Exela further extends exchange offer; support from holders now 80%

Chicago, Nov. 29 – Exela Technologies, Inc. further extended its exchange offer for its secured notes due 2023, according to a press release.

The offer has been extended to 5 p.m. ET on Dec. 1 from 11:59 p.m. ET on Nov. 24.

The company also announced that support now stands at 80%.

As Nov. 24, noteholders tendered $430.7 million, or 46%, of the outstanding old notes. Certain holders of around $350.6 million of existing notes agreed to exchange all of their old notes.

With the supporting holders and the tenders, approximately $781.3 million, or 83.5%, of outstanding old notes have been tendered with consent solicitations.

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, previously announced, 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.

Holders 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. Existing notes will be exchanged on a one-to-one basis.

Earlier, the offer included an offer to exchange outstanding term loans. That part of the offer was terminated.

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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