Exela trims term loan B to $350 million, flexes to Libor plus 700 bps

By Sara Rosenberg

New York, June 27 – Exela Technologies downsized its six-year term loan B to $350 million from $525 million and increased pricing to Libor plus 700 basis points from Libor plus 550 bps, according to a market source.

In addition, the original issue discount on the term loan B was revised to 98 from 99 and the 101 sift call protection was extended to one year from six months, the source said.

The term loan B still has a 1% Libor floor.

The company’s now $450 million of senior secured credit facilities also include a $100 million revolver.

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

Commitments are due at noon ET on Wednesday, the source added.

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.

Other funds for the roughly $2.8 billion transaction will come from $1 billion of secured notes due 2023, upsized from $525 million, cash from Quinpario, rollover equity and cash on hand at closing.

The company eliminated plans to issue $300 million in unsecured notes.

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 this 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.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.