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Altisource Announces Closing of the Previously Announced Exchange and Maturity Extension Transactions of the Company's Term Loans
ASPSAltisource Portfolio Solutions S.A.(ASPS) GlobeNewswire News Room·2025-02-20 12:29

Core Points - Altisource Portfolio Solutions S.A. has successfully closed its Term Loan Exchange Transactions and entered into a 12.5millionSuperSeniorFacility,whichisexpectedtostrengthenitsbalancesheetandsupportlong−termgrowth[1][2][3]Group1:TermLoanExchangeTransactions−TheTermLoanExchangeTransactionsinvolvedtheexchangeof12.5 million Super Senior Facility, which is expected to strengthen its balance sheet and support long-term growth [1][2][3] Group 1: Term Loan Exchange Transactions - The Term Loan Exchange Transactions involved the exchange of 232.8 million in senior secured term loans for a new first lien loan of 160millionandapproximately58.2millioncommonshares[3]−Thenewfacilityconsistsofa160 million and approximately 58.2 million common shares [3] - The new facility consists of a 110 million interest-bearing loan and a 50millionnon−interest−bearingexitfee[3][5]−Aportionoftheprincipalamountoftheexchangedloans,approximately50 million non-interest-bearing exit fee [3][5] - A portion of the principal amount of the exchanged loans, approximately 1.4 million, matures on January 15, 2029 [4] Group 2: Super Senior Facility - The Super Senior Facility, executed on February 19, 2025, is intended to fund transaction costs related to the Term Loan Exchange and for general corporate purposes [4] - The maturity date of the Super Senior Facility is February 19, 2029, with an original issue discount of 10.0% [6] - The interest rate on the Super Senior Facility is SOFR plus 6.50% with a 3.50% SOFR floor [6] Group 3: Stakeholder Warrants - Shareholders approved the issuance of transferable warrants allowing stakeholders to purchase approximately 114.5 million shares of common stock at $1.20 per share [4][7] - Stakeholder Warrants will allow stakeholders to purchase approximately 3.25 shares for each share held, with half expiring on April 2, 2029, and the other half on April 30, 2032 [7] Group 4: Financial Terms and Conditions - The interest rate on the new debt is SOFR plus 6.50% per annum with a 3.50% SOFR floor, and the exit fee has an interest rate of 0% [5][6] - Mandatory and voluntary prepayments under the new facility will be allocated on a pro rata basis between the new debt and the exit fee [5] - Beginning with the fiscal year ending December 31, 2025, a portion of excess cash flow will be used for prepayment of the Super Senior Facility and the New Facility [5][6]