Exela Technologies reveals $1.45 billion debt commitment structure

By Sara Rosenberg

New York, April 3 – Exela Technologies has received a commitment for $625 million in senior secured credit facilities and $825 million in bridge facilities to help fund its creation through the merger of Quinpario Acquisition Corp. 2, SourceHOV LLC and Novitex Holdings Inc., according to a PREM14A filed with the Securities and Exchange Commission on Monday.

RBC Capital Markets LLC, Credit Suisse Securities (USA) LLC, Natixis Securities Americas LLC and KKR Capital Markets LLC are the leads on the debt.

The credit facilities consist of a $100 million revolver and a $525 million term loan.

The bridge debt is split between a $525 million senior secured bridge facility and a $300 million senior unsecured bridge facility.

Exela expects to issue up to $525 million in senior secured notes and up to $300 million in senior unsecured notes to replace the bridge facilities.

Other funds for the roughly $2.8 billion transaction will come from cash from Quinpario, rollover equity and cash on hand at closing, including from equity financing.

Shareholders of SourceHOV and Novitex are rolling 100% of the current equity, and will be the majority shareholders of the combined company.

The combined company is expected to have about $1.5 billion in revenue in 2017.

Closing is expected in the second quarter, subject to customary conditions, regulatory approvals, receipt of approvals from Quinpario stockholders and receipt of proceeds from debt and equity financing.

Quinpario is a St. Louis-based special purpose acquisition company that completed its initial public offering in January 2015.

SourceHOV, majority owned by HandsOn Global Management LLC, is an Irving, Texas-based provider of Transaction Processing Solutions and Enterprise Information Management solutions.

Novitex is a West Stamford, Conn.-based provider of technology-driven managed services that is owned by Apollo Global Management LLC.

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