Conduent launches $846 million term loan B at Libor plus 300-325 bps

By Sara Rosenberg

New York, Sept. 6 – Conduent Business Services LLC launched on its call on Wednesday an $846 million senior secured term loan B due Dec. 7, 2023 that is talked at Libor plus 300 basis points to 325 bps with a 0% Libor floor and a par issue price, according to a market source.

The term loan has 101 soft call protection for six months and amortization of 1% per annum, the source said.

Included in the loan is a maximum total net leverage covenant of 4.25 times through Sept. 30, 2018, stepping down to 3.75 times thereafter.

Citigroup Global Markets Inc. is the lead arranger on the deal. J.P. Morgan Securities LLC is the administrative agent.

Proceeds will be used to reprice an existing term loan B from Libor plus 400 bps with a 0% Libor floor.

Mandatory prepayments under the repriced term loan are the same as the existing, but the 75% excess cash flow sweep levels will be removed.

Assumed ratings on the term loan B are Ba2/BB+.

Existing lender commitments are due at 5 p.m. ET on Tuesday and new money commitments are due at 5 p.m. ET on Sept. 13, the source added.

Closing is expected on Oct. 10.

Conduent is a Florham Park, N.J.-based provider of business process services with expertise in transaction-intensive processing, analytics and automation.

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