Exela ends exchange offer with 97.6% noteholder participation

Chicago, Dec. 3 – Exela Technologies, Inc. ended its exchange offer and consent solicitation for its secured notes due 2023 on Friday, according to a press release.

The offer was first launched on Oct. 27.

The company was offering to exchange up to $225 million in cash and new 11½% first-priority senior secured notes due 2026 for the Exela Intermediate LLC and Exela Finance Inc.’s outstanding 10% first-priority senior secured notes due 2023.

There was also a consent solicitation for amendments that included eliminating some events of default, modifying covenants regarding mergers and consolidations and modifying or eliminating some other provisions, including provisions relating to future guarantors and defeasance.

The deadline was extended to 5 p.m. ET on Dec. 3, pushed back two days from 5 p.m. ET on Dec. 1 and earlier from 11:59 p.m. ET on Nov. 24.

At the final deadline, Exela received tenders for 97.6% of the outstanding old notes.

After the offer settles, there will be $22.84 million, or 2.4%, of the old notes outstanding.

All conditions have been satisfied or waived, and the issuers have accepted all of the tendered notes.

As a result, Exela will issue $662.66 million principal amount of new notes and $225 million in cash (excluding interest). This is the equivalent of $726.08 of new notes and $246.53 in cash per $1,000 principal amount of old notes.

Settlement is expected for Dec. 8.

Earlier, the offer included an offer to exchange outstanding term loans. That part of the offer was terminated.

D.F. King & Co., Inc is the information and tender agent for the offer (888 644-6071, 212 269-5550, exela@dfking.com, http://www.dfking.com/exela).

Exela in an Irving, Tex.-based business process automation company.

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