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Altisource Announces Closing of the Previously Announced Exchange and Maturity Extension Transactions of the Company's Term Loans
ASPSAltisource Portfolio Solutions S.A.(ASPS) Newsfilter·2025-02-20 12:29

Core Viewpoint - Altisource Portfolio Solutions S.A. has successfully completed a significant financial restructuring through the Term Loan Exchange Transactions and the establishment of a Super Senior Facility, aimed at strengthening its balance sheet and positioning the company for sustainable long-term growth and value creation [2][3][4] Financial Transactions - The Term Loan Exchange Transactions involved the exchange of 232.8millioninseniorsecuredtermloansforanewfirstlienloanof232.8 million in senior secured term loans for a new first lien loan of 160 million and approximately 58.2 million common shares [3][4] - The New Facility consists of a 110millioninterest−bearingloananda110 million interest-bearing loan and a 50 million non-interest-bearing exit fee, with a maturity date of April 30, 2030 [5][6] - The Super Senior Facility, amounting to 12.5million,wasexecutedtofundtransactioncostsandforgeneralcorporatepurposes,maturingonFebruary19,2029[4][6]InterestRatesandRepaymentTerms−TheinterestrateontheNewDebtissetatSOFRplus6.5012.5 million, was executed to fund transaction costs and for general corporate purposes, maturing on February 19, 2029 [4][6] Interest Rates and Repayment Terms - The interest rate on the New Debt is set at SOFR plus 6.50% per annum, with a 3.50% SOFR floor, while the Exit Fee carries a 0% interest rate [5][6] - Mandatory and voluntary prepayments under the New Facility will be allocated on a pro rata basis between the New Debt and the Exit Fee [5] - Beginning with the fiscal year ending December 31, 2025, a portion of the company's excess cash flow will be used to prepay the Super Senior Facility and the New Facility [6] Stakeholder Warrants - Shareholders approved the issuance of Stakeholder Warrants, allowing holders to purchase approximately 114.5 million shares of common stock at 1.20 per share [4][7] - Stakeholder Warrants will provide the ability to purchase approximately 3.25 shares for each share held, with different expiration dates for the two halves of the warrants [7] Future Reporting - Detailed descriptions of the Term Loan Exchange Transactions and the Super Senior Facility will be provided in a Current Report on Form 8-K to be filed by Altisource [8]