Altisource Portfolio to repay $10 million of term loan debt

By Wendy Van Sickle

Columbus, Ohio, Sept. 12 – Altisource Portfolio Solutions SA gave notice to its lenders that it plans to repay $10 million of its term loans using proceeds of its recently closed public offering of common stock, according to a news release.

“We believe reducing the principal balance of the [term loan] by $10 million should be accretive for shareholders as it reduces the number of shares exercisable under outstanding penny warrants by almost one million shares and reduces annual interest expense by approximately $3.4 million based on current interest rates. In addition, this repayment provides the company with the option to extend the maturity date of the [term loan] and revolving credit facility by one year to April 2026, subject to the company’s payment of a 2% payment-in-kind extension fee and other conditions,” said William B. Shepro, chairman and chief executive officer of Altisource, in the release.

The repayment will bring the unpaid principal balance down to $219.76 million, exclusive of payment-in-kind interest that accrued between June 30 and the repayment date.

Altisource is a Luxembourg-based service provider and marketplace for the real estate and mortgage industries.

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