Exela Technologies Provides Update on Capital Deployment Strategy
Exela Technologies has updated its Capital Deployment Strategy, establishing XCV-STS, LLC to manage assets aimed at enhancing shareholder value. The company purchased $70 million in 2026 Senior Secured Notes at a discount using equity-raise funds, marking the first asset to STS. Interest from these notes and proceeds from planned asset sales will be utilized to return value to shareholders. While Exela is optimistic about executing the strategy, it acknowledges potential uncertainties regarding necessary approvals and successful implementations.
- Establishment of XCV-STS, LLC to enhance shareholder value.
- Purchase of $70 million in 2026 Senior Secured Notes at a discount.
- Success of the Capital Deployment Strategy is uncertain and dependent on external approvals.
- No assurances can be made regarding successful implementation and completion of the strategy.
IRVING, Texas, Aug. 03, 2022 (GLOBE NEWSWIRE) -- Exela Technologies, Inc. (“Exela” or “Company”) (NASDAQ: XELA, XELAP) today announced an update to its Capital Deployment Strategy (the “Strategy”) that was previously announced June 6, 2022. Exela has established XCV-STS, LLC (“STS” or “Serve the Shareholders”) to hold assets to be used for implementing the Strategy. The Company has purchased
“Today’s announcement is an important part of our recently initiated Capital Deployment Strategy to Serve the Shareholders. We continue to believe that every part of our capital structure is inappropriately valued . STS will allow us to continue to hunt for rewarding opportunities,” noted Par Chadha, Executive Chairman Exela. “We look forward to sharing more business updates on our upcoming earnings call.”
The successful implementation of our Strategy is dependent upon obtaining appropriate approvals of various internal and external stakeholders, the successful sale of certain stand-alone assets, and other factors, many of which are outside of our control. Although the Company believes it will be able to obtain such approvals and will be successful in its endeavors, it cannot provide any assurances that it will be successful in obtaining such approvals or in effectively implementing and timely completing the Strategy, or that successful completion of the Strategy will have the desired impact.
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About Exela Technologies
Exela Technologies is a business process automation (BPA) leader, leveraging a global footprint and proprietary technology to provide digital transformation solutions enhancing quality, productivity, and end-user experience. With decades of experience operating mission-critical processes, Exela serves a growing roster of more than 4,000 customers throughout 50 countries, including
Forward-Looking Statements
Certain statements included in this press release are not historical facts but are forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are accompanied by words such as "may", "should", "would", "plan", "intend", "anticipate", "believe", "estimate", "predict", "potential", "seem", "seek", "continue", "future", "will", "expect", "outlook" or other similar words, phrases or expressions. These forward-looking statements include statements regarding our industry, future events, estimated or anticipated future results and benefits, future opportunities for Exela, and other statements that are not historical facts. These statements are based on the current expectations of Exela management and are not predictions of actual performance. These statements are subject to a number of risks and uncertainties, including without limitation those discussed under the heading "Risk Factors" in Exela's Annual Report and other securities filings. In addition, forward-looking statements provide Exela's expectations, plans or forecasts of future events and views as of the date of this communication. Exela anticipates that subsequent events and developments will cause Exela's assessments to change. These forward-looking statements should not be relied upon as representing Exela's assessments as of any date subsequent to the date of this press release.
Investor and/or Media Contacts:
Vincent Kondaveeti
E: vincent.kondaveeti@exelatech.com
Mary Beth Benjamin
E: IR@exelatech.com
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