Altisource: Altisource Announces Closing of the Previously Announced Exchange and Maturity Extension Transactions of the Company's Term Loans

LUXEMBOURG, Feb. 20, 2025 (GLOBE NEWSWIRE) -- Altisource Portfolio Solutions S.A. ("Altisource" or the "Company") (NASDAQ:ASPS), a leading provider and marketplace for the real estate and mortgage industries, announced the closing of its previously announced exchange transaction with one hundred percent (100%) of lenders under the Company's senior secured term loans (the "Lenders") (the "Term Loan Exchange Transactions") and entered into a $12.5 million super senior credit facility (the "Super Senior Facility"). "I am pleased that we executed and closed the Term Loan Exchange Transactions and the Super Senior Facility. We believe these transactions significantly strengthen Altisource's balance sheet which, combined with the Company's improving financial performance, should help position it for sustainable long-term growth and value creation," said Chairman and Chief Executive Officer William B. Shepro. Under the Term Loan Exchange Transactions, the Lenders exchanged the Company's senior secured term loans with an outstanding balance of $232.8 million for a $160 million new first lien loan (the "New Facility") and the issuance of approximately 58.2 million common shares of Altisource (the "Debt Exchange Shares"). The New Facility is comprised of a $110 million interest-bearing loan (the "New Debt") and a $50 million non-interest-bearing exit fee (the "Exit Fee"). The following is a summary of certain terms of the New Facility: $158.6 million of the New Facility matures on April 30, 20301 The interest rate on the New Debt is Secured Overnight Financing Rate ("SOFR") plus 6.50% per annum with a 3.50% SOFR floor The interest rate on the Exit Fee is 0% All mandatory and voluntary prepayments under the New Facility are allocated between the New Debt and the Exit Fee on a pro rata basis The principal amortization of the New Facility is 1.0% of the New Debt per year A minimum of 95% of net proceeds the Company may receive from the exercise of Cash Exercise Stakeholder Warrants (defined below) are to be used to prepay the New Facility Beginning with the fiscal year ending December 31, 2025, the lesser of (a) 75% of the aggregate Excess Cash Flow (as defined in the credit agreement) for the most recently ended fiscal year of the Company for which financial statements have been delivered and (b) such amount which, immediately after giving effect to such repayment, would result in the Company having no less than $30 million of total cash on its balance sheet, shall be applied first to the prepayment of the Super Senior Facility (defined below) and, second, to the prepayment of the New Facility ___________________________1 A portion of the principal amount of the Exchange Term Loans in the amount of approximately $1.4 million matures on January 15, 2029. On February 19, 2025, Altisource also executed and closed on the Super Senior Facility to fund transaction costs related to the Term Loan Exchange Transaction and for general corporate purposes. The following is a summary of certain terms of the Super Senior Facility: The maturity date ...Full story available on Benzinga.com