Exela holds New York investor luncheon Tuesday on $825 million two-part notes offering

By Paul Deckelman

New York, June 20 – Exela Technologies Inc.’s planned $825 million two-part offering of high-yield notes is being shopped around to potential buyers at a Tuesday investor luncheon and conference call in New York, syndicate sources said.

The sources said the luncheon would take place at 12:30 p.m. ET in Manhattan’s St. Regis Hotel, and those unable to attend could dial in to the call.

Other details emerged on the roadshow for the Rule 144A and Regulation S for life offering, including a Thursday breakfast investor meeting in Toronto, followed by a luncheon meeting in Chicago.

The sources also said that the investor presentation for the deal is now available on the Roadshow Access website.

The deal is expected to price during the June 26 week.

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

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

Proceeds from the 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.

Paul A. Harris contributed to this report

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