EXELA TECHNOLOGIES INC - XELA STOCK NEWS

Exela Technologies announced a 5-year contract renewal with a leading Irish bank, originally established in 2013. The renewal adds $19 million to the Total Contract Value and incorporates Exela's entire XBP suite, enhancing liquidity solutions, client communication, and transaction processing.

Vitalie Robu, President of Exela EMEA, emphasized the strategic importance of Ireland and the region's role as a model for growth in Europe.

Exela Technologies has advanced its Capital Deployment Strategy aimed at maximizing shareholder value, as outlined in their June 6, 2022 press release. The company plans to initiate the sale of several stand-alone assets, expected to generate proceeds exceeding $200 million. This initiative will be complemented by efforts to negotiate debt maturities and may pave the way for a future stock buyback program. Exela emphasizes that the success of these initiatives hinges on obtaining necessary approvals and executing asset sales effectively.

Exela Technologies, Inc. (NASDAQ: XELA, XELAP) announced $18.3 million in new customer contracts to be realized over three years, starting in Q3 2022. These contracts involve two new clients and highlight the robust performance of Exela's Exchange for Bills and Payments (XBP), a key revenue driver in their ITPS segment. The company noted increased interest in XBP solutions, attributed to pandemic recovery. Exela continues to pursue additional opportunities to leverage XBP's strengths, positioning itself as a leader in bill and payment processing.

Exela Technologies has appointed Sriram Ramanathan as Chief Technology Officer. Ramanathan will oversee product direction, solution strategy, and thought leadership to enhance digital transformation for Exela's global customer base. With over 23 years of technology experience, he previously held key roles at Genpact and Oracle, focusing on AI and engineering. Exela aims to optimize processes and outcomes through innovative tech solutions, serving over 4,000 clients worldwide.

Exela Technologies, Inc. has successfully completed its exchange offer, converting approximately 41.6 million shares of Common Stock into 2.08 million shares of its newly established 6.00% Series B Cumulative Convertible Perpetual Preferred Stock. This exchange allows shareholders to gain a liquidation preference of $25.00 per share. Furthermore, a stock dividend will be issued, granting Tandem Preferred Stock with voting rights, equal to one share for each Series B Preferred Stock held. These changes enhance shareholder value and voting power.

Exela Technologies (NASDAQ: XELA) announced the continuation of its exchange offer for common stock, valid until 11:59 p.m. EST on May 16, 2022. The amended offer allows shareholders to exchange 20 shares of common stock for 1 share of Series B Preferred Stock with a $25 liquidation preference. Shareholders who tendered shares before May 2, 2022, must re-tender to participate. The company intends to issue a Tandem Voting Stock dividend related to the Series B Preferred Stock after the offering concludes.

Exela Technologies announced a new 5-year contract valued at approximately $2.5 million with ÖBB, Austria's National Railway Company. This agreement falls under Exela's Bills and Payments (XBP) segment, which is its largest accounting area. The deal will leverage Exela's digital payment platform, capable of processing complex invoices in over 13 languages and utilizing AI to optimize payment solutions compatible with legacy accounting systems. This partnership showcases Exela's extensive service offerings in digital transformation and process automation.

Exela Technologies reported a Q1 2022 revenue of $279.4 million, down 6.9% from Q1 2021. The company faced a net loss of $57 million for the quarter, compared to a net loss of $39.2 million in the prior year. Despite the downturn, Exela achieved a significant milestone with a total contract value (TCV) of $78 million, a 131% increase year-over-year. The SMB segment showed strong growth, with DrySign user numbers rising 200% quarter-over-quarter. The company raised $119 million through equity offerings to reduce debt and support growth initiatives.

Exela Technologies has secured a new $150 million financing commitment from PNC Bank to replace its existing securitization facility. The new facility, expected to close by May 31, 2022, is anticipated to generate annual interest savings of approximately $6 million at a current interest rate of around 4.00%. This move is part of Exela's ongoing effort to improve its financial efficiency. Further details will be provided in an 8K filing after the facility's closing.