Conduent postpones $750 million secured notes offering, cites market conditions, deal structure

By Paul A. Harris

Portland, Ore., May 27 – Conduent announced in a Thursday 8-K document filed with the U.S. Securities and Exchange Commission that it has decided not to go forward with its efforts to refinance its term loans due 2022 and 2023 and its revolver.

The refinancing was to be accomplished by means of a $750 million Rule 144A and Regulation S placement of Conduent Business Services, LLC/Conduent State & Local Solutions, Inc. eight-year senior secured notes (B1/BB-) that were being shopped on an investor roadshow, according to market sources.

Price talk of 5½% to 5¾%, wide to initial guidance in the low-to-mid 5% area, surfaced on Wednesday.

Citigroup Global Markets Inc. was the lead bookrunner.

The Florham Park, N.J.-based business process services company stated in the 8-K that its decision not to go forward with the refinancing was based on the combination of deal structure and market conditions, and added that it was postponing refinancing efforts in order to pursue a more optimal outcome at a later point in time.

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