KLDiscovery Closes Transaction to Significantly Strengthen Long-Term Financial Foundation and Support Continued Growth
KLDiscovery Inc. (KLDI), a leading provider of electronic discovery and data solutions, has closed a significant deleveraging transaction to strengthen its financial position. The deal involves exchanging outstanding convertible notes for new shares representing approximately 96% of the Company's outstanding common equity. Additionally, the Company's term loan maturity has been extended to August 2027.
KLDiscovery also received $50 million in second lien secured financing, used to repay portions of first lien secured debt and revolving credit, as well as transaction expenses. This strategic move reduces long-term debt and positions the Company for continued growth in the eDiscovery space. CEO Chris Weiler expressed excitement about leveraging this momentum to drive the Company's vision forward.
KLDiscovery Inc. (KLDI), un fornitore leader di soluzioni di discovery elettronica e dati, ha completato una significativa operazione di riduzione dell'indebitamento per rafforzare la propria posizione finanziaria. L'affare prevede lo scambio di note convertibili in circolazione per nuove azioni che rappresentano circa il 96% dell'equity comune in circolazione della Società. Inoltre, la scadenza del prestito a termine della Società è stata prolungata fino ad agosto 2027.
KLDiscovery ha anche ricevuto 50 milioni di dollari in finanziamenti garantiti di secondo grado, utilizzati per ripagare parte del debito garantito di primo grado e il credito revolving, oltre alle spese di transazione. Questa mossa strategica riduce il debito a lungo termine e posiziona la Società per una continua crescita nel settore dell'eDiscovery. Il CEO Chris Weiler ha espresso entusiasmo per sfruttare questo slancio per portare avanti la visione della Società.
KLDiscovery Inc. (KLDI), un proveedor líder de soluciones de descubrimiento electrónico y datos, ha cerrado una transacción significativa de desapalancamiento para fortalecer su posición financiera. El acuerdo implica el intercambio de notas convertibles en circulación por nuevas acciones que representan aproximadamente el 96% del capital común en circulación de la empresa. Además, el vencimiento del préstamo a plazo de la empresa se ha extendido hasta agosto de 2027.
KLDiscovery también recibió 50 millones de dólares en financiamiento garantizado de segundo grado, utilizado para pagar partes de la deuda garantizada de primer grado y el crédito revolvente, así como los gastos de transacción. Este movimiento estratégico reduce la deuda a largo plazo y posiciona a la empresa para un crecimiento continuo en el espacio de eDiscovery. El CEO Chris Weiler expresó su emoción por aprovechar este impulso para avanzar la visión de la empresa.
KLDiscovery Inc. (KLDI)는 전자 발견 및 데이터 솔루션의 선도적인 공급업체로서 재무 건전성을 강화하기 위한 중요한 디레버리징 거래를 완료했습니다. 이 거래는 미지급 전환사채를 회사의 발행 보통주 약 96%를 나타내는 새로운 주식으로 교환하는 것과 관련이 있습니다. 또한, 회사의 만기 대출이 2027년 8월까지 연장되었습니다.
KLDiscovery는 5000만 달러의 2순위 담보 금융을 받았습니다, 이는 1순위 담보 채무와 회전 신용을 일부 상환하고 거래 비용을 충당하는 데 사용됩니다. 이 전략적 조치는 장기 부채를 줄이고 회사를 전자 발견 분야에서 지속적인 성장으로 나아갈 수 있도록 합니다. CEO인 Chris Weiler는 이 동력을 활용하여 회사의 비전을 발전시키는 것에 대한 기대감을 표명했습니다.
KLDiscovery Inc. (KLDI), un fournisseur de premier plan de solutions de découverte électronique et de données, a conclu une transaction de désendettement significative pour renforcer sa position financière. L'accord implique l'échange d'obligations convertibles en circulation contre de nouvelles actions représentant environ 96 % des capitaux propres ordinaires en circulation de la Société. De plus, l'échéance du prêt à terme de la Société a été prolongée jusqu'en août 2027.
KLDiscovery a également reçu 50 millions de dollars de financement garanti de deuxième rang, utilisés pour rembourser des parties de la dette garantie de premier rang et de la ligne de crédit renouvelable, ainsi que des frais de transaction. Ce mouvement stratégique réduit la dette à long terme et positionne la Société pour une croissance continue dans le domaine de l'eDiscovery. Le PDG Chris Weiler a exprimé son enthousiasme à l'idée de tirer parti de cet élan pour faire avancer la vision de la Société.
KLDiscovery Inc. (KLDI), ein führender Anbieter von elektronischen Entdeckungs- und Datenlösungen, hat eine bedeutende Deleveraging-Transaktion abgeschlossen, um seine finanzielle Position zu stärken. Der Deal umfasst den Austausch von ausstehenden wandelbaren Schuldverschreibungen gegen neue Aktien, die etwa 96% des ausstehenden Stammkapitals des Unternehmens repräsentieren. Darüber hinaus wurde die Fälligkeit des Terminkredits des Unternehmens bis August 2027 verlängert.
KLDiscovery erhielt zudem 50 Millionen Dollar an gesichertem Finanzierungsvolumen der zweiten Rangfolge, das zur Rückzahlung von Teilen der gesicherten Schuld und revolvierenden Krediten sowie für Transaktionskosten verwendet wurde. Dieser strategische Schritt reduziert die langfristige Verschuldung und positioniert das Unternehmen für weiteres Wachstum im Bereich eDiscovery. CEO Chris Weiler äußerte sich begeistert darüber, dieses Momentum zu nutzen, um die Vision des Unternehmens voranzutreiben.
- Significant reduction in long-term debt through deleveraging transaction
- Received $50 million in second lien secured financing
- Term loan maturity extended to August 2027, providing financial flexibility
- Strong support from capital partners, indicating confidence in the company's prospects
- Substantial dilution of existing shareholders, with new shares representing 96% of outstanding common equity
- Cancellation of outstanding convertible notes, potentially impacting previous note holders
“The successful completion of this transaction marks a significant milestone in KLDiscovery’s journey to help our clients solve their most complex data challenges. With the new capital structure now in place, the Company is well-positioned to reach new heights and continue delivering innovative solutions for our customers,” said Chris Weiler, Chief Executive Officer of KLDiscovery. “I extend my sincere appreciation to our capital partners for their steadfast support along the way. We are excited to leverage this momentum in collaboration with our team, driving forward our vision to solidify KLDiscovery’s leadership in the eDiscovery space.”
As contemplated by the previously announced transaction agreements, KLDiscovery’s outstanding convertible notes have been cancelled and exchanged for new shares representing approximately
Kevin Griffin, Chief Executive Officer & Chief Investment Officer of debenture holder MGG Investment Group, said, “KLDiscovery is on a strong trajectory with enhanced financial flexibility. We are confident in KLDiscovery’s innovative technology, dedicated team, and business strategy, and look forward to the Company’s continued growth and evolution.”
Advisors
Gibson, Dunn & Crutcher LLP served as legal counsel, Guggenheim Securities, LLC and AlixPartners served as financial advisors, and C Street Advisory Group served as strategic communications advisor to the Company.
Morrison & Foerster LLP served as legal counsel and Lazard served as investment banker to the debenture holders.
About KLDiscovery
KLDiscovery provides technology-enabled services and software to help law firms, corporations, and government agencies solve complex data challenges. With offices in 26 locations across 17 countries, KLDiscovery is a global leader in delivering best-in-class data management, information governance, and eDiscovery solutions to support the litigation, regulatory compliance, and internal investigation needs of clients. Serving organizations for over 30 years, KLDiscovery offers data collection and forensic investigation, early case assessment, data processing, application software and data hosting for web-based document reviews, and managed document review services. In addition, through its global Ontrack data management business, KLDiscovery delivers world-class data recovery, disaster recovery, email extraction and restoration, data destruction, and tape management. KLDiscovery has been recognized as one of the fastest growing companies in
Forward Looking Statements
This press release includes “forward looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934 and the United States Private Securities Litigation Reform Act of 1995. All statements contained in this press release other than statements of historical facts, including, without limitation, statements regarding the benefits of the transaction, the Company's leadership in the eDiscovery space, the support of the Company's capital partners, the Company’s ability to deliver innovative solutions, and Company growth and evolution, are forward-looking statements. When used in this press release, the words “estimated,” “expects,” “anticipates,” “forecasts,” “believes,” “may,” “will,” “should,” “future” and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements.
These forward-looking statements are not guarantees of future performance, conditions, results or events, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside KLDiscovery’s management’s control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. Important factors, among others, that may affect actual results or outcomes include: consequences of KLDiscovery’s substantial levels of indebtedness; KLDiscovery’s potential failure to comply with privacy and information security regulations governing the client datasets it processes and stores; KLDiscovery’s ability to operate in highly competitive markets, and potential adverse effects of this competition; risk of decreased revenues if KLDiscovery does not adapt its pricing models; the ability to attract, motivate and retain qualified employees, including members of KLDiscovery’s senior management team; the ability to maintain a high level of client service and expand operations; potential issues with KLDiscovery’s product offerings that could cause legal exposure, reputational damage and an inability to deliver services; KLDiscovery’s ability to develop and successfully grow revenues from new products such as Nebula, improve existing products and adapt its business model to keep pace with industry trends; risk that KLDiscovery’s products and services fail to interoperate with third-party systems; potential unavailability of third-party technology that KLDiscovery uses in its products and services; potential disruption of KLDiscovery’s products, offerings, website and networks; difficulties resulting from KLDiscovery’s implementation of new consolidated business systems; the ability to deliver products and services following a disaster or business continuity event; disease or similar public health threat, such as COVID-19; potential unauthorized use of our products and technology by third parties and/or data security breaches and other incidents; potential intellectual property infringement claims; and the ability to comply with various trade restrictions, such as sanctions and export controls, resulting from KLDiscovery’s international operations. These risks and other factors discussed in the “Risk Factors” section of KLDiscovery’s Annual Report on Form 10-K for the year ended December 31, 2023, and subsequent Quarterly Reports on Form 10-Q filed with the Securities Exchange Commission (“SEC”) and any other reports KLDiscovery files with the SEC, could cause actual results to differ materially from those expressed or implied by forward-looking statements made by KLDiscovery or on its behalf. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results or outcomes. All statements speak only as of the date made, and unless legally required, KLDiscovery undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240814966662/en/
Danny Zambito
888.811.3789
danny.zambito@kldiscovery.com
Source: KLDiscovery Inc.
FAQ
What was the main outcome of KLDiscovery's (KLDI) recent financial transaction?
How much new financing did KLDiscovery (KLDI) receive in the transaction?
How does the transaction affect KLDiscovery's (KLDI) financial position?
What impact does the transaction have on KLDiscovery's (KLDI) existing shareholders?
