Atento hammers out term sheet with certain stakeholders

Chicago, June 23 – Atento SA announced that the company made progress with certain key stakeholders for a transaction involving a recapitalization and deleveraging of Atento’s balance sheet, according to a press release.

Atento and certain members of an ad hoc group of holders of Atento's senior secured notes have agreed on a term sheet for a new interim financing of at least $30 million and a comprehensive restructuring of its balance sheet that will significantly delever the group.

It was previously announced that Atento was working with holders of more than 70% of the company’s $500 million senior secured notes issued by Atento Luxco 1 and more than 75% of the $39.6 million senior secured notes due 2025 from the same issuer,

The term sheet includes $79 million of additional capital in connection with a comprehensive restructuring. The parties further intend for the company's leverage to be significantly reduced at the culmination of this process.

The new financing represents sufficient capital through the implementation of a holistic restructuring, and certain of the parties have agreed on a path to enter into a restructuring support agreement and definitive documentation on the financing within two weeks of execution of the term sheet.

New financing is subject to conditions including customer due diligence, and the grant of security interests.

Houlihan Lokey and FTI Consulting are working as financial advisers. Sidley Austin and Loyens & Loeff Luxembourg are the lead legal advisers.

The ad hoc group of investors is represented by Rothschild & Co. as financial adviser and Hogan Lovells as legal adviser.

Luxembourg-based Atento is a provider of customer relationship management and business process outsourcing services in Latin America.

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