Exela terminates term loan tender, amends offer for 2023 notes

Buffalo, N.Y., Nov. 19 – Exela Technologies, Inc. amended its ongoing tender offer for secured notes due 2023 and terminated the term loan offer, according to a press release on Friday.

According to the release, the offer to purchase and exchange outstanding term loans, issued under a first-lien credit agreement on July 12, 2017, has been terminated, effective immediately.

The offer for the 10% first-priority secured notes due 2023 issued by Exela Intermediate LLC and Exela Finance Inc. remains in full effect, except with additional investor protections.

The included protections are as follows:

• A subsidiary guarantor of the new notes will not be released from its guarantee solely because it ceases to be a wholly owned subsidiary;

• The issuers and their subsidiaries will not transfer material intellectual property rights to any unrestricted subsidiary; and

• Subordinating the liens securing the new notes, and related subsidiary guarantees, will require the consent of each affected holder of new notes.

As Nov. 18, noteholders tendered $318.7 million, or 34.1%, of the outstanding old notes, reflecting no increase in tenders after the Nov. 9 extension.

Holders and lenders who tendered their notes are still eligible to receive $900 in cash per $1,000 face amount of the debt up to a maximum amount of $225 million in cash, excluding accrued interest.

As previously reported, 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 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 2026 maturity.

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

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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