Exela sets roadshow for $525 million secured notes and $300 million unsecured notes

By Paul A. Harris

Portland, Ore., June 16 – Exela Technologies Inc. plans to start a roadshow on Monday for an $825 million two-part offering of high-yield notes, according to a syndicate source.

RBC Capital Markets LLC is the left bookrunner for a $525 million tranche of six-year senior secured notes, callable after two years at par plus 50% of the coupon and featuring a two-year 40% equity clawback.

Credit Suisse Securities (USA) LLC is the left bookrunner for a $300 million tranche of seven-year senior unsecured notes, callable after three years at par plus 50% of the coupon and featuring a three-year 40% equity clawback.

KKR Capital Markets and Natixis are joint bookrunners for both tranches.

Proceeds from the Rule 144A and Regulation S for life offering will be used to help fund the creation of the company through the merger of Quinpario Acquisition Corp. 2, SourceHOV LLC and Novitex Holdings Inc.

The issuing entities will be special purpose vehicles Exela Intermediate Co. and Exela Finance Inc.

Quinpario is a St. Louis-based special purpose acquisition company. 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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