Exela extends tender offer; noteholders tender 34.1% of notes

Chicago, Nov. 10 – Exela Technologies, Inc. extended the early tender time of its ongoing tender offer for secured notes due 2023 and a term loan and announced the early tender results for the notes in a press release on Wednesday, according to a press release.

The notes in the offer are the 10% first-priority secured notes due 2023 issued by Exela Intermediate LLC and Exela Finance Inc. The outstanding term loans were issued under a first-lien credit agreement on July 12, 2017, and subsequently amended.

As of the original early deadline at 5 p.m. ET on Nov. 9, noteholders tendered $318.7 million, or 34.1%, of the outstanding old notes.

Holders and lenders who tender their notes and loans were being offered $900 in cash per $1,000 face amount of the debt up to a maximum amount of $225 million in cash.

As the cash part of the offer has already been exceeded, the early tendered notes will be purchased for cash on a prorated basis.

The balance of any tendered loans and notes not accepted for cash will be subject to an exchange. They will be automatically changed into new notes with the current issuers of the existing notes with an 11½% coupon and a July 15, 2026 maturity date. The maturity date could shift to July 12, 2023, however, if any existing loans or notes are still outstanding after the offer.

Any such exchange will be $1,000 of new notes for $1,000 of outstanding loans or notes.

Ranking for the notes will be first priority, sharing the collateral on an equal and ratable basis with any existing loans and notes that remain outstanding.

Participants after the early deadline were only eligible for the exchange and would only have received $950 per $1,000 principal amount after the deadline. However, the early consideration has been extended to the final deadline.

Interest will also be paid to the settlement date on tendered old instruments.

Consents are also being solicited with the offer.

If more than half of the holders and lenders participate, the provisions containing the restrictive covenants and events of default for the old notes and/or the old term loans will be eliminated.

If more than two-thirds of noteholders participate, the collateral for the old notes will be released.

Holders who participate in the offer are deemed to have given consent.

The offer will expire at 11:59 p.m. ET on Nov. 24.

D.F. King & Co., Inc is the information and tender agent for the offer (888 644-6071, 212 269-5550, exela@dfking.com, http://www.dfking.com/exela).

Exela in an Irving, Tex.-based business process automation company.

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