Altisource Signs Revolving Line of Credit Agreement
Altisource Portfolio Solutions S.A. (NASDAQ: ASPS) has secured a revolving line of credit worth up to $20 million, facilitated by STS Mater Fund, Ltd., managed by Deer Park Road Management Company, LP. This Credit Agreement, effective as of June 22, 2021, allows borrowing in three stages over three years, with no financial covenants. The funds are aimed at enhancing liquidity amid pandemic impacts. CEO William B. Shepro expressed optimism regarding the return of demand in their default-related business and the growth potential from their origination services.
- Access to a $20 million revolving line of credit enhances liquidity.
- No financial covenants imposed, providing operational flexibility.
- CEO indicates potential recovery in default-related business demand by year-end.
- Current financial impacts from the pandemic may affect short-term performance.
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Mortgage and Real Estate industry service provider secures a revolving line of credit for general corporate purposes
LUXEMBOURG, June 23, 2021 (GLOBE NEWSWIRE) -- Altisource Portfolio Solutions S.A. (NASDAQ: ASPS), an integrated service provider and marketplace for the real estate and mortgage industries, announced that its subsidiary Altisource S.à r.l. (“Altisource”) signed an agreement with STS Mater Fund, Ltd. (the “Lender”), an investment fund managed by Deer Park Road Management Company, LP (“Deer Park”), on June 22, 2021 providing Altisource with a revolving line of credit for general corporate purposes (the “Credit Agreement”). The term of the Credit Agreement is three years.
Under the terms of the Credit Agreement, the Lender will make loans to Altisource from time to time, in amounts requested by Altisource and Altisource may voluntarily prepay all or any portion of the outstanding loans. The Credit Agreement provides Altisource the ability to borrow up to
“We are pleased to secure this revolver from Deer Park. This demonstrates Deer Park’s confidence in Altisource’s long term prospects and provides us with additional liquidity while we are temporarily impacted by the pandemic. We anticipate that demand for our default related business will begin to return at the end of this year and stabilize in 2023. We also continue to make progress with our origination business and believe it will be a significant contributor to growth and shareholder value,” said Chairman and Chief Executive Officer William B. Shepro.
Deer Park is an owner of
About Altisource®
Altisource Portfolio Solutions S.A. (NASDAQ: ASPS) 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 it serves. Additional information is available at Altisource.com.
| Investor Contact: Michelle D. Esterman Chief Financial Officer 770-612-7007 Michelle.Esterman@altisource.com | Press Contact: Michele Wixon Marketing Director 770-612-7007 Michele.Wixon@altisource.com |
Source: Altisource Portfolio Solutions S.A.
FAQ
What is the purpose of the revolving line of credit secured by Altisource ASPS?
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When was the credit agreement for Altisource ASPS signed?
What does CEO William B. Shepro say about future business prospects for Altisource ASPS?
