Exela Technologies, Power Products surface in secondary market

By Sara Rosenberg

New York, June 30 – Exela Technologies (Exela Intermediate LLC)’s credit facilities broke for trading on Friday, with the term loan B quoted above its original issue discount.

Also, Power Products LLC firmed the spread on its term loan at the high side of guidance and extended the call protection before making its way into the secondary market.

Exela starts trading

Exela’s credit facilities began trading on Friday, with the $350 million six-year term loan B quoted at 98¼ bid, 99¼ offered, according to a trader.

Pricing on the term loan B is Libor plus 750 basis points with a 1% Libor floor and it was sold at an original issue discount of 98. The debt has 101 soft call protection for one year.

During syndication, the term loan was downsized from $525 million, pricing was increased from revised talk of Libor plus 700 bps and initial talk of Libor plus 550 bps, the discount widened from 99, the call protection was extended from six months, amortization was lifted to 2.5% in years one and two and 5% per annum thereafter from 1% per annum, and the MFN sunset was removed.

The company’s $450 million of senior secured credit facilities (B3/B) also includes a $100 million revolver.

Exela lead banks

RBC Capital Markets LLC, Credit Suisse Securities (USA) LLC, Natixis Securities Americas LLC and KKR Capital Markets LLC are leading Exela’s credit facilities.

Proceeds will be used along with $1 billion of secured notes due 2023, cash from Quinpario Acquisition Corp. 2, rollover equity and cash on hand at closing to help fund the creation of the company through the merger of Quinpario, SourceHOV LLC and Novitex Holdings Inc. in a transaction valued at about $2.8 billion.

Upon downsizing the term loan B, the company upsized its secured notes offering from $525 million and eliminated plans to issue $300 million in unsecured notes.

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. 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.

Power Products updated, breaks

Power Products set pricing on its $269 million term loan (B1/B) due Dec. 20, 2022 at Libor plus 400 bps, the wide end of the Libor plus 375 bps to 400 bps talk, and extended the 101 soft call protection to one year from six months, a market source remarked.

As before, the term loan has a 1% Libor floor and a par issue price.

With final terms in place, the term loan broke for trading and levels were seen at par bid, par ½ offered, a trader added.

RBC Capital Markets is leading the deal that will be used to reprice an existing term loan down from Libor plus 450 bps with a 1% Libor floor.

Power Products is a Menomonee Falls, Wis.-based manufacturer and supplier of electrical products for construction and maintenance, recreational marine and specialty vehicles, industrial power, and transportation.

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