Exela Technologies announces significant debt reduction
- Reduced long-term debt of the company by approximately $ 4541 million
- Reduced interest expense and loan amortization by $ 42 million and on track to exceed the target of $ 50 million additional annual free cash flow
IRVING, Texas, December 16, 2021 (GLOBE NEWSWIRE) – Exela Technologies, Inc. (“Exela” or the “Company”) (NASDAQ: XELA), a global leader in business process automation across multiple industries, has announced today that following the completion of the Senior Note Exchange Offer and the private exchange of its term loans with certain of its lenders, the Company’s long-term debt has been reduced by approximately $ 454 million compared to long-term debt outstanding as of December 31, 2020.
As previously indicated, the total amount of senior notes deposited reached an offer rate of 97.6% and the Company was able to exchange or cancel the majority of its obligations under the credit agreements. By exceeding the required consent thresholds, some negative covenants from the underlying deed and term loan agreements have been removed.
These steps represent a key step in the Company’s strategy to significantly reduce the total amount of its debt and the associated interest expense. The transactions will result in an estimated annual reduction in interest expense and loan amortization of $ 42 million, exceeding the target of $ 37.5 million announced by the company.
By Chadha, Executive Chairman of Exela, said, “I am delighted that the company is on track to surpass the improvement in free cash flow of $ 50 million per year, which was announced at our conference. phone call about the third quarter results. I am very proud of our team and grateful to our advisors who helped us accomplish this. We will continue our efforts to unlock shareholder value.
BofA Securities acted as exclusive financial advisor, B. Riley acted as advisor and capital provider and Paul Weiss acted as legal advisor to Exela in connection with these exchange transactions.
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About Exela Technologies
Exela Technologies is a leader in Business Process Automation (BPA), leveraging a global footprint and proprietary technology to deliver digital transformation solutions that improve quality, productivity and user experience. final. With decades of experience operating critical processes, Exela serves a growing list of over 4,000 clients in 50 countries, including over 60% of the Fortune® 100. Using core technologies spanning information management , workflow automation and integrated communications, Exela software and services include multisector and departmental solution suites dealing with finance and accounting, human capital management and legal management, as well as industry-specific solutions for banking, healthcare, insurance and the public sector. With cloud-enabled platforms, built on a configurable stack of automation modules, and more than 17,500 employees operating in 23 countries, Exela is rapidly deploying integrated technology and operations as a digital travel partner of end to end.
Certain statements included in this press release are not historical facts but are forward-looking statements for the purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. Forward-looking statements are generally accompanied by words such as ” can “,” should “,” would “,” plan “,” intend “,” anticipate “,” believe “,” estimate “,” predict “,” potential “,” seem “,” seek “, “continue”, “future”, “will”, “expect”, “prospect” or other similar words, phrases or expressions. These forward-looking statements include statements about our industry, future events, estimated or anticipated future results and benefits, future opportunities for Exela and other statements that are not historical facts. These statements are based on the current expectations of Exela management and are not predictions of actual performance. These statements are subject to a number of risks and uncertainties, including, without limitation, those discussed under “Risk Factors” in Exela’s annual report and other securities-related documents. . In addition, forward-looking statements provide Exela’s expectations, plans or forecasts regarding future events and opinions as of the date of such communication. Exela anticipates that subsequent events and developments will cause Exela’s valuations to change. These forward-looking statements should not be taken as representing Exela’s assessments as of a date subsequent to the date of this press release.
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1 Excluding amounts held by affiliates of the Company.