Altisource Announces Closing of the Previously Announced Exchange and Maturity Extension Transactions of the Company’s Term Loans
Altisource Portfolio Solutions (NASDAQ: ASPS) has successfully closed its previously announced term loan exchange transactions and secured a new $12.5 million super senior credit facility. The company's lenders exchanged $232.8 million in senior secured term loans for a $160 million new first lien loan and approximately 58.2 million common shares.
The new facility consists of a $110 million interest-bearing loan and a $50 million non-interest-bearing exit fee, with the majority maturing on April 30, 2030. The interest rate is set at SOFR plus 6.50% with a 3.50% SOFR floor. Additionally, shareholders approved the issuance of transferrable warrants allowing stakeholders to purchase approximately 114.5 million shares at $1.20 per share, with different expiration dates in 2029 and 2032.
Altisource Portfolio Solutions (NASDAQ: ASPS) ha completato con successo le transazioni di scambio dei prestiti a termine precedentemente annunciate e ha ottenuto una nuova linea di credito super senior di 12,5 milioni di dollari. I creditori dell'azienda hanno scambiato 232,8 milioni di dollari in prestiti a termine garantiti senior per un prestito di 160 milioni di dollari di nuova emissione con primo diritto di pegno e circa 58,2 milioni di azioni ordinarie.
La nuova struttura consiste in un prestito di 110 milioni di dollari con interessi e una commissione di uscita di 50 milioni di dollari senza interessi, con la maggior parte in scadenza il 30 aprile 2030. Il tasso d'interesse è fissato a SOFR più 6,50% con un limite SOFR del 3,50%. Inoltre, gli azionisti hanno approvato l'emissione di warrant trasferibili che consentono agli azionisti di acquistare circa 114,5 milioni di azioni a 1,20 dollari per azione, con diverse date di scadenza nel 2029 e 2032.
Altisource Portfolio Solutions (NASDAQ: ASPS) ha cerrado con éxito las transacciones de intercambio de préstamos a plazo que había anunciado previamente y ha asegurado una nueva línea de crédito super senior de 12,5 millones de dólares. Los prestamistas de la empresa intercambiaron 232,8 millones de dólares en préstamos a plazo garantizados senior por un nuevo préstamo de 160 millones de dólares con primer derecho de prenda y aproximadamente 58,2 millones de acciones ordinarias.
La nueva instalación consiste en un préstamo de 110 millones de dólares con intereses y una tarifa de salida de 50 millones de dólares sin intereses, con la mayoría venciendo el 30 de abril de 2030. La tasa de interés se establece en SOFR más 6,50% con un límite SOFR del 3,50%. Además, los accionistas aprobaron la emisión de warrants transferibles que permiten a los interesados comprar aproximadamente 114,5 millones de acciones a 1,20 dólares por acción, con diferentes fechas de vencimiento en 2029 y 2032.
Altisource Portfolio Solutions (NASDAQ: ASPS)는 이전에 발표한 기한 대출 교환 거래를 성공적으로 마감하고 1250만 달러의 새로운 슈퍼 시니어 신용 시설을 확보했습니다. 회사의 대출자는 2억 3280만 달러의 시니어 담보 기한 대출을 1억 6000만 달러의 새로운 첫 번째 담보 대출과 약 5820만의 보통주로 교환했습니다.
새로운 시설은 1억 1000만 달러의 이자가 붙는 대출과 5000만 달러의 비이자 퇴출 수수료로 구성되며, 대부분은 2030년 4월 30일에 만료됩니다. 이자율은 SOFR 플러스 6.50%로 설정되어 있으며, SOFR 바닥은 3.50%입니다. 또한, 주주들은 이해관계자들이 약 1억 1450만 주를 주당 1.20달러에 구매할 수 있는 양도 가능한 워런트를 발행하는 것을 승인했으며, 만료일은 2029년과 2032년에 다릅니다.
Altisource Portfolio Solutions (NASDAQ: ASPS) a réussi à finaliser les transactions d'échange de prêts à terme précédemment annoncées et a sécurisé une nouvelle facilité de crédit super senior de 12,5 millions de dollars. Les créanciers de l'entreprise ont échangé 232,8 millions de dollars en prêts à terme garantis senior contre un nouveau prêt de 160 millions de dollars avec premier droit de gage et environ 58,2 millions d'actions ordinaires.
La nouvelle facilité se compose d'un prêt portant intérêt de 110 millions de dollars et d'une commission de sortie de 50 millions de dollars sans intérêt, la majorité arrivant à échéance le 30 avril 2030. Le taux d'intérêt est fixé à SOFR plus 6,50% avec un plancher SOFR de 3,50%. De plus, les actionnaires ont approuvé l'émission de warrants transférables permettant aux parties prenantes d'acheter environ 114,5 millions d'actions à 1,20 dollar par action, avec différentes dates d'expiration en 2029 et 2032.
Altisource Portfolio Solutions (NASDAQ: ASPS) hat erfolgreich die zuvor angekündigten Umtauschtransaktionen für Terminkredite abgeschlossen und eine neue 12,5 Millionen Dollar umfassende super senior Kreditfazilität gesichert. Die Kreditgeber des Unternehmens tauschten 232,8 Millionen Dollar an besicherten Terminkrediten gegen einen neuen 160 Millionen Dollar ersten Pfandkredit und etwa 58,2 Millionen Stammaktien.
Die neue Fazilität besteht aus einem 110 Millionen Dollar verzinslichen Darlehen und einer 50 Millionen Dollar nicht verzinslichen Ausstiegsgebühr, wobei der Großteil am 30. April 2030 fällig wird. Der Zinssatz liegt bei SOFR plus 6,50% mit einem SOFR-Boden von 3,50%. Darüber hinaus genehmigten die Aktionäre die Ausgabe übertragbarer Warrants, die es den Beteiligten ermöglichen, etwa 114,5 Millionen Aktien zu einem Preis von 1,20 Dollar pro Aktie zu erwerben, mit unterschiedlichen Ablaufdaten in 2029 und 2032.
- Significant debt reduction from $232.8M to $160M through restructuring
- Secured new $12.5M super senior credit facility for additional liquidity
- Extended debt maturity to 2030, improving near-term financial flexibility
- Minimal principal amortization at 1.0% of New Debt per year
- Substantial shareholder dilution through issuance of 58.2M new common shares
- Additional potential dilution from 114.5M shares under warrant program
- Higher interest rate at SOFR + 6.50% with 3.50% floor
- Mandatory cash flow sweep of up to 75% of excess cash flow
Insights
This comprehensive debt restructuring represents a significant deleveraging event for Altisource, reducing the company's debt burden by approximately
The new debt structure offers several strategic advantages:
- The extended maturity to 2030 provides important breathing room for operational improvement
- The bifurcated structure between interest-bearing debt (
$110 million ) and non-interest exit fee ($50 million ) reduces immediate cash flow pressure - The
$12.5 million super senior facility provides essential working capital for operations
However, the equity component of this restructuring introduces significant dilution through both immediate share issuance (58.2M shares) and potential future dilution via warrants (114.5M shares). The warrant structure is particularly noteworthy, featuring a dual-class approach that balances immediate capital raising potential with longer-term flexibility. The
The mandatory cash flow sweep provision, requiring up to
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 (
“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
$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 a3.50% 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
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 of the Super Senior Facility is February 19, 2029
- The original issue discount on the Super Senior Facility is
10.0% - The interest rate on the Super Senior Facility is SOFR plus
6.50% with a3.50% SOFR floor - 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 and, second, to the prepayment of the New Facility
On February 18, 2025, the Company’s shareholders approved resolutions to enable, among other things, an issuance of transferrable warrants to holders of the Company’s (i) common stock, (ii) restricted share units and (iii) outstanding warrants to purchase shares of Common Stock at an exercise price of
The foregoing descriptions of each of the Term Loan Exchange Transactions and the Super Senior Facility are not complete and are to be described in more detail in a Current Report on Form 8-K to be filed by Altisource in connection with the transactions described herein. The transactions described above were undertaken pursuant to the Transaction Support Agreement dated December 16, 2024, a copy of which is attached as Exhibit 10.1 to Altisource’s Current Report on Form 8-K filed with the Securities and Exchange Commission on December 17, 2024.
Disclaimer
This press release does not constitute an offer to sell or buy, nor the solicitation of an offer to sell or buy, any securities nor shall there be any sale, issuance or transfer of securities in any jurisdiction in contravention of applicable law. In particular, this communication is not an offer of securities for sale into the United States or any other jurisdiction. No offer of securities shall be made absent registration under the Securities Act of 1933, as amended, or pursuant to an exemption from, or in a transaction not subject to, such registration requirements.
Forward-Looking Statements
This press release contains forward-looking statements that involve a number of risks and uncertainties. These forward-looking statements include all statements that are not historical fact, including statements that relate to, among other things, future events or our future performance or financial condition, including without limitation, statements relating to the potential for the Term Loan Exchange Transactions and the Super Senior Facility to improve the Company’s financial performance and impact thereof on the Company’s long-term growth and value creation, the issuance of Stakeholder Warrants and the Distribution Date for the Stakeholder Warrants. These statements may be identified by words such as “anticipate,” “intend,” “expect,” “may,” “could,” “should,” “would,” “plan,” “estimate,” “seek,” “believe,” “potential” or “continue” or the negative of these terms and comparable terminology. Such statements are based on expectations as to the future and are not statements of historical fact. Furthermore, forward-looking statements are not guarantees of future performance and involve a number of assumptions, risks and uncertainties that could cause actual results to differ materially. Important factors that could cause actual results to differ materially from those suggested by the forward-looking statements include, but are not limited to, the risks discussed in Item 1A of Part I “Risk Factors” in our Form 10-K filed with the Securities and Exchange Commission on March 7, 2024, as updated by the information in Item 1A. of Part II “Risk Factors” in our subsequently filed quarterly reports on Form 10-Q filings. We caution you not to place undue reliance on these forward-looking statements which reflect our view only as of the date of this report. We are under no obligation (and expressly disclaim any obligation) to update or alter any forward-looking statements contained herein to reflect any change in our expectations with regard thereto or change in events, conditions or circumstances on which any such statement is based. The risks and uncertainties to which forward looking statements are subject include, but are not limited to, risks related to customer concentration, the timing of the anticipated increase in default related referrals following the expiration of foreclosure and eviction moratoriums and forbearance programs, and any other delays occasioned by government, investor or servicer actions, the use and success of our products and services, our ability to retain existing customers and attract new customers and the potential for expansion or changes in our customer relationships, technology disruptions, our compliance with applicable data requirements, our use of third party vendors and contractors, our ability to effectively manage potential conflicts of interest, macro-economic and industry specific conditions, our ability to effectively manage our regulatory and contractual obligations, the adequacy of our financial resources, including our sources of liquidity and ability to repay borrowings and comply with our debt agreements, including the financial and other covenants contained therein, as well as Altisource’s ability to retain key executives or employees, behavior of customers, suppliers and/or competitors, technological developments, governmental regulations, taxes and policies. The financial projections and scenarios contained in this press release are expressly qualified as forward-looking statements and, as with other forward-looking statements, should not be unduly relied upon. We undertake no obligation to update these statements, scenarios and projections as a result of a change in circumstances, new information or future events, except as required by law.
About Altisource
Altisource Portfolio Solutions S.A. is an integrated service provider and marketplace for the real estate and mortgage industries. Combining operational excellence with a suite of innovative services and technologies, Altisource helps solve the demands of the ever-changing markets we serve. Additional information is available at www.Altisource.com.
FOR FURTHER INFORMATION CONTACT:
Michelle D. Esterman
Chief Financial Officer
T: (770) 612-7007
E: Michelle.Esterman@altisource.com
FAQ
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