Altisource repurchases $27 million of term loan in June, September

By Tali Rackner

Norfolk, Va., Oct. 22 – Altisource Portfolio Solutions SA repurchased portions of its senior secured term loan in June and September, according to a 10-Q filing with the Securities and Exchange Commission.

In June, the company repurchased $16 million at a 9% discount, recognizing a net gain of $1.1 million on the early extinguishment.

In September, it repurchased an additional $11 million at an 11% discount, recognizing a net gain of $900,000 on the early extinguishment.

Following the third amendment entered into on Aug. 1, 2014, the term loan must be repaid in equal consecutive quarterly principal installments of $1.5 million, which began on Sept. 30, 2014, with the balance due at maturity.

All amounts outstanding under the senior secured term loan agreement will become due on the earlier of (a) Dec. 9, 2020; and (b) the date on which the loans are declared to be due and owing by the administrative agent at the request (or with the consent) of the required lenders, the filing said.

In addition to the scheduled principal payments, the term loan is subject to mandatory prepayment upon issuances of debt, casualty and condemnation events and sales of assets, as well as from a percentage of consolidated excess cash flow if the leverage ratio is greater than 3 times, as calculated in accordance with the provisions of the senior secured term loan agreement. No mandatory prepayments were owed for the nine months ending Sept. 30.

Interest is equal to the greater of Libor and 1% plus a 350 basis point margin.

Altisource is a Luxembourg-based provider of services focused on high-value, technology-enabled knowledge-based solutions principally related to real estate and mortgage portfolio management, asset recovery and customer relationship management.

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