Exela sets talk in $825 million two-part note offer, pricing Tuesday

By Paul A. Harris

Portland, Ore., June 26 – ExelaTechnologies Inc. set price talk in its $825 million two-part offering of high-yield notes, according to a syndicate source.

A $525 million tranche of six-year senior secured notes (B2/B+), callable after two years at par plus 50% of the coupon, is talked to yield 7¼% to 7½%.

RBC Capital Markets LLC is the left bookrunner for the secured notes.

A $300 million tranche of seven-year senior unsecured notes (Caa2/CCC+), callable after three years at par plus 50% of the coupon, is talked to yield in the 11% area.

Credit Suisse Securities (USA) LLC is the left bookrunner for the unsecured notes.

Books close at 10 a.m. ET on Tuesday and the Rule 144A and Regulation S for life deal is set to price thereafter.

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

Proceeds 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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