Hyland Software Inc., a U.S. developer of content services platform (CSP) software, is planning to make a $419 million shareholder distribution, which it will fund mostly with debt and cash on hand. Pro forma for the transaction, the company's adjusted leverage will be 7.9x. We are affirming all of our ratings on Hyland Software Inc., including our 'B-' issuer credit rating, our 'B-' issue-level rating on its first-lien term loan ('3' recovery rating; rounded estimate: 55%), and our 'CCC' issue-level rating on its second-lien term loan ('6' recovery rating; rounded estimate: 5%). The stable outlook reflects our expectation that the company will maintain leverage of approximately 8x and a free operating cash flow-to-debt ratio in the low- to mid-single digit
