Altisource Announces it has Entered Into a Transaction Support Agreement with Lenders Holding Approximately 99% of the Company's Term Loans to Effectuate Exchange, Amendment and Maturity Extension Transactions

Core Viewpoint - Altisource Portfolio Solutions S.A. has entered into a binding transaction support agreement with lenders to restructure its existing debt, aiming to significantly improve its financial position and support long-term growth [1][2]. Debt Restructuring Details - The agreement will reduce the company's current outstanding debt obligations from $231 million to $172.5 million, a reduction of $58 million or 25% [2]. - The new debt structure includes an up to $110 million interest-bearing first lien loan, a $50 million non-interest-bearing exit fee, and a $12.5 million super senior credit facility [2]. - The maturity date of the new facility will be extended by five years to April 30, 2030 [2]. Financial Impact - The restructuring is expected to decrease the company's annual cash and paid-in-kind (PIK) interest by approximately $18 million, with cash interest reduced by about $9 million and PIK interest also reduced by approximately $9 million [2]. - The interest rate on the new debt and super senior facility is set at SOFR + 6.50%, compared to the existing term loans' rate of SOFR + 8.75% [2]. Equity and Warrants - Lenders under the new facility will receive approximately 57.9 million common shares of Altisource, representing 63.5% of the pro forma outstanding shares post-transaction [2]. - Existing shareholders and certain stakeholders will be granted warrants to purchase approximately 115 million common shares at an exercise price of $1.20 per share, potentially mitigating dilution from shares issued to lenders [2]. Management Commentary - The CEO expressed satisfaction with the transaction support agreement, highlighting that it would strengthen Altisource's balance sheet and position the company for sustainable long-term growth [2]. Additional Information - The transactions are subject to certain terms and conditions, including the negotiation and execution of definitive agreements and necessary approvals from the company's Board of Directors and shareholders [3]. - Further details are available in a presentation posted on the company's Investor Relations website [4].