Hexaware sets price talk for $1.01B bond deal backing buyout

Joint global coordinators Goldman Sachs and HSBC are circulating price guidance at 5.50-5.75% for a $1.01 billion offering of five-year (non-call two) senior secured notes underway for CA Magnum Holdings, according to market sources. The deal supports The Carlyle Group's acquisition of Hexaware Technologies Ltd.

Books for U.S.-based investors shut today at close of business New York time. Books close tomorrow, Oct. 27 at 11 a.m. London time and 6 p.m. Hong Kong time for all other investors. Pricing is expected tomorrow morning New York time.

Joint bookrunners are Barclays, BNP Paribas, Citigroup, MUFG, Nomura and Standard Chartered.

The Carlyle Group emerged in August as the frontrunner to acquire Hexaware from private equity owner Baring Private Equity Asia with a bid of $3 billion. A $2.082 billion equity contribution will also be used to finance the buyout, according to the offering memorandum.

Mumbai, India-based Hexaware Technologies provides information technology consulting, software development and business process services in the Americas, Europe and the Asia-Pacific region.

Moody's and Fitch have assigned B1/BB- ratings to CA Magnum Holdings, with stable/positive outlooks. The bonds have also garnered B1/BB- grades. Moody's on Oct. 22 noted that CA Magnum's consolidated leverage, as measured by gross debt/EBITDA, will be around 6.0x immediately following the transaction, but it expects the company's leverage to decline to around 4.7x by December 2023 and around 4.0x by 2024.