Conduent talks $750 million eight-year secured notes to yield 5½%-5¾%; pricing Wednesday

By Paul A. Harris

Portland, Ore., May 26 – Conduent Business Services, LLC and Conduent State & Local Solutions, Inc. talked their $750 million offering of eight-year senior secured notes (B1/BB-) to yield 5½% to 5¾%, according to market sources.

Official talk comes wide to initial guidance in the low-to-mid 5% area, a trader said.

Books close at 2:30 p.m. ET on Wednesday, and the deal is set to price thereafter.

Citigroup Global Markets Inc. is the lead bookrunner. BofA Securities Inc., Mizuho Securities USA Inc., MUFG, Truist Securities Inc., Wells Fargo Securities LLC, HSBC Securities (USA) Inc., KeyBanc Capital Markets Inc., Santander Investment Securities Inc. and U.S. Bancorp Investments Inc. are the joint bookrunners.

The Rule 144A and Regulation S for life notes become callable after three years at par plus 50% of the coupon. They feature a three-year 40% equity clawback at par plus the full coupon and a 101% poison put.

The Florham Park, N.J.-based business process services company plans to use the proceeds to repay bank debt.

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