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 term loans, aiming to significantly improve its financial position and facilitate long-term growth [1][2]. Debt Restructuring - The agreement will reduce the company's current outstanding debt obligations from $231 million to $172.5 million, a decrease of $58 million or 25% [2]. - The new debt structure includes an up to $110 million term loan, a $50 million non-interest-bearing exit fee, and a $12.5 million super senior credit facility [1][2]. - The maturity date of the new facility will be extended by five years to April 30, 2030 [2]. Interest Expense Reduction - The annual cash and paid-in-kind (PIK) interest on outstanding debt will be reduced by approximately $18 million, with cash interest decreasing by about $9 million and PIK interest also decreasing by approximately $9 million [2]. - The interest rate on the new debt and super senior facility is set at SOFR + 6.50%, compared to SOFR + 8.75% on existing term loans [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]. Financial Performance - The company has improved its net cash used in operating activities by over $55 million since 2021, indicating a positive trend in financial performance [2]. - The restructuring is aimed at stabilizing the company and positioning it for sustainable long-term growth and value creation [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]. - A presentation with further details has been made available on the company's Investor Relations website [4].