Exela amends exchange offer, increases consideration per share

By Mary-Katherine Stinson

Lexington, Ky., Feb. 7 – Exela Technologies Inc. amended its exchange offer for its common stockholders to exchange up to 100 million shares of stock for up to an upsized $125 million aggregate principal amount of 6% senior notes due 2029 to increase the consideration per share, raising it to $1.25 per share from $1.00 per share.

Shareholders can now exchange 20 shares for one note having a principal amount equal to $25.

As a result of the increase, shares may now only be tendered in 20-share increments going forward.

Previously, 25 shares were exchangeable for one $25 note.

All shares tendered in the exchange offer will be retired.

The exchange offer originally allowed the issuance of up to $100 million of the 6% senior notes.

As previously reported, the new notes will be redeemable, in whole or in part, at any time on or after March 31, 2024. They will mature on March 31, 2029.

The offer will expire at 11:59 p.m. ET on Feb. 24.

On Jan. 25, the last reported sale price of Exela’s common stock on the Nasdaq Capital Market was $0.55 per share, and there were 348,743,927 shares outstanding.

The offering represents a 127% premium to the closing share on Jan. 25.

Continental Stock Transfer & Trust Co. is the exchange agent.

D.F. King & Co., Inc is the information and tender agent for the offer (888 644-6071, 212 269-5550, exela@dfking.com, http://www.dfking.com/exela).

Exela is an Irving, Tex.-based business process automation company.

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