Conduent Completes $447 Million Refinancing to Extend Credit Maturities

Conduent Incorporated announced the closing of a $447 million refinancing transaction on October 23, 2026. The transaction involves extending the maturity dates of the company's revolving credit facilities and adding new commitments from existing bank lenders.

The refinancing replaces the company’s existing $357 million senior secured revolving credit facilities with new facilities. The new agreements extend the maturity dates from October 2026 and May 2028 to May 31, 2029. The new facilities include a $75 million first-out revolving credit facility and two second-out revolving credit facilities with aggregate commitments of up to $357 million. Additionally, a new $15 million performance letter of credit (PLOC) facility was established.

Interest rates for the new revolving facilities will be determined by the borrower at the option of either the term SOFR rate plus a margin of 4.00% for the first-out facility or 3.00% for the second-out facilities, or the applicable base rate plus a margin of 3.00% for the first-out facility or 2.00% for the second-out facilities. The facilities are subject to a 0.50% commitment fee and customary prepayment provisions.

Conduent contributed certain assets related to its government health services and eligibility and enrollment services businesses to a new subsidiary as part of the transaction. The company also repaid $62 million to existing lenders from the net proceeds of the previously disclosed sale of its Public Transit business. The refinancing is expected to reduce the company’s surety bond and letter-of-credit portfolio by approximately $550 million upon the completion of the announced sale of its Tolling business.

The new credit agreements include financial maintenance covenants, such as requirements to maintain specified leverage ratios and liquidity. They also contain an event of default requiring New Borrower and its subsidiaries to enter into a qualified securitization or receivables financing facility of at least $100 million by December 31, 2026, or within 45 days if agreed upon by lenders.