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Altisource Announces it has Entered Into a Transaction Support Agreement with Lenders Holding Approximately 99% of the Company's Term Loans to Effectuate Exchange, Amendment and Maturity Extension Transactions
ASPSAltisource Portfolio Solutions S.A.(ASPS) Newsfilter·2024-12-17 02:47

Core Viewpoint - Altisource Portfolio Solutions S.A. has entered into a binding transaction support agreement with lenders to restructure its existing debt, aiming to significantly improve its financial position and support long-term growth [1][2]. Debt Restructuring Details - The agreement will reduce the company's current outstanding debt obligations from 231millionto231 million to 172.5 million, a reduction of 58millionor2558 million or 25% [2]. - The new debt structure includes an up to 110 million interest-bearing first lien loan, a 50millionnon−interest−bearingexitfee,anda50 million non-interest-bearing exit fee, and a 12.5 million super senior credit facility [2]. - The maturity date of the new facility will be extended by five years to April 30, 2030 [2]. Financial Impact - The restructuring is expected to decrease the company's annual cash and paid-in-kind (PIK) interest by approximately 18million,withcashinterestreducedbyabout18 million, with cash interest reduced by about 9 million and PIK interest also reduced by approximately 9million[2].−TheinterestrateonthenewdebtandsuperseniorfacilityissetatSOFR+6.509 million [2]. - The interest rate on the new debt and super senior facility is set at SOFR + 6.50%, compared to the existing term loans' rate of SOFR + 8.75% [2]. Equity and Warrants - Lenders under the new facility will receive approximately 57.9 million common shares of Altisource, representing 63.5% of the pro forma outstanding shares post-transaction [2]. - Existing shareholders and certain stakeholders will be granted warrants to purchase approximately 115 million common shares at an exercise price of 1.20 per share, potentially mitigating dilution from shares issued to lenders [2]. Management Commentary - The CEO expressed satisfaction with the transaction support agreement, highlighting that it would strengthen Altisource's balance sheet and position the company for sustainable long-term growth [2]. Additional Information - The transactions are subject to certain terms and conditions, including the negotiation and execution of definitive agreements and necessary approvals from the company's Board of Directors and shareholders [3]. - Further details are available in a presentation posted on the company's Investor Relations website [4].