Exela again extends exchange offer; holder support now over 95%

Chicago, Dec. 2 – Exela Technologies, Inc. again extended its exchange offer for its secured notes due 2023 and also provided an update on its exchange offer and consent solicitations, according to a press release.

Currently, the company has support and tenders from 95.5% of holders of the 10% first-priority secured notes due 2023 issued by Exela Intermediate LLC and Exela Finance Inc.

Support is sufficient for the proposed amendments to the indenture governing the existing notes.

The modifications that were part of the consent solicitation include eliminating some events of default, modifying covenants regarding mergers and consolidations and modifying or eliminating some other provisions, including provisions relating to future guarantors and defeasance.

As the deadline has been extended, noteholders who tender their notes are still eligible for the early consideration. This would be $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, and 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.

The early tender time and expiration time has now been extended to 5 p.m. ET on Dec. 3, pushed back two days from 5 p.m. ET on Dec. 1 and earlier from 11:59 p.m. ET on Nov. 24.

Settlement is expected to occur promptly after the extended tender time.

The deadline to withdraw notes has now passed.

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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