Altisource Announces That It Made a $20 Million Par Paydown on Its Term Loans
24 February 2023 - 12:57AM
Altisource Portfolio Solutions S.A. (“Altisource” or the “Company”)
(NASDAQ: ASPS), a leading provider and marketplace for the real
estate and mortgage industries, today announced that it made a $20
million par paydown of the principal of the Company’s term loan
using proceeds from its previously announced underwritten public
offering of common stock. As a result of such paydown, the
payment-in-kind interest component of the term loan (“PIK
Interest”) will be reduced to 4.5% from 5.0%, and the number of
warrants granted to the term loan lenders to purchase
Altisource common stock (the “Warrant Shares”) will be
reduced to 2,578,743 from 3,223,851. The PIK interest rate and
number of warrants are subject to a potential further reduction
based on certain additional par paydowns, if any, made prior to
February 14, 2024 (“Aggregate Par Paydowns”) as set forth
below. Additionally, the maturity date of the terms loans can
be extended, at Altisource’s option, by one year to April 30, 2026
if Aggregate Par Paydowns total $30 million or more.
|
Aggregate Par Paydowns |
PIK Interest |
Warrant Shares |
|
Less than
$20 million |
5.00% |
3,223,851 |
|
$20 million
or more but less than below |
4.50% |
2,578,743 |
|
$30 million
or more but less than below |
3.75% |
1,612,705 |
|
$40 million
or more but less than below |
3.50% |
1,612,705 |
|
$45 million
or more but less than below |
3.00% |
1,612,705 |
|
$50 million
or more but less than below |
2.50% |
1,612,705 |
|
$55 million
or more but less than below |
2.00% |
1,612,705 |
|
$60 million
or more but less than below |
1.00% |
1,612,705 |
|
$65 million
or more but less than below |
0.50% |
1,612,705 |
|
$70 million
or more |
0.00% |
1,612,705 |
The term loans and the Warrant Shares are described in detail in
the Altisource 8-K dated February 9, 2023 and the Altisource 8-K
dated February 21, 2023, respectively.
Forward-Looking Statements
This press release contains forward-looking
statements that involve a number of risks and uncertainties. These
forward-looking statements include all statements that are not
historical fact, including statements that relate to, among other
things, future events or our future performance or financial
condition. These statements may be identified by words such as
“anticipate,” “intend,” “expect,” “may,” “could,” “should,”
“would,” “plan,” “estimate,” “seek,” “believe,” “potential” or
“continue” or the negative of these terms and comparable
terminology. Such statements are based on expectations as to the
future and are not statements of historical fact. Furthermore,
forward-looking statements are not guarantees of future performance
and involve a number of assumptions, risks and uncertainties that
could cause actual results to differ materially. Important factors
that could cause actual results to differ materially from those
suggested by the forward-looking statements include, but are not
limited to, the risks discussed in Item 1A of Part I “Risk Factors”
in our Form 10-K filing with the Securities and Exchange
Commission, as the same may be updated from time to time in our
Form 10-Q filings. We caution you not to place undue reliance on
these forward-looking statements which reflect our view only as of
the date of this report. We are under no obligation (and expressly
disclaim any obligation) to update or alter any forward-looking
statements contained herein to reflect any change in our
expectations with regard thereto or change in events, conditions or
circumstances on which any such statement is based. The risks and
uncertainties to which forward-looking statements are subject
include, but are not limited to, risks related to the COVID-19
pandemic, customer concentration, the timing of the anticipated
increase in default related referrals following the expiration of
foreclosure and eviction moratoriums and forbearance programs, the
timing of the expiration of such moratoriums and programs, and any
other delays occasioned by government, investor or servicer
actions, the use and success of our products and services, our
ability to retain existing customers and attract new customers and
the potential for expansion or changes in our customer
relationships, technology disruptions, our compliance with
applicable data requirements, our use of third party vendors and
contractors, our ability to effectively manage potential conflicts
of interest, macro-economic and industry specific conditions, our
ability to effectively manage our regulatory and contractual
obligations, the adequacy of our financial resources, including our
sources of liquidity and ability to repay borrowings and comply
with our credit agreements, including the financial and other
covenants contained therein, as well as Altisource’s ability to
retain key executives or employees, behavior of customers,
suppliers and/or competitors, technological developments,
governmental regulations, taxes and policies. The financial
projections and scenarios contained in this press release are
expressly qualified as forward-looking statements and, as with
other forward-looking statements, should not be unduly relied upon.
We undertake no obligation to update these statements, scenarios
and projections as a result of a change in circumstances, new
information or future events.
About Altisource
Altisource Portfolio Solutions S.A. is an
integrated service provider and marketplace for the real estate and
mortgage industries. Combining operational excellence with a suite
of innovative services and technologies, Altisource helps solve the
demands of the ever-changing markets we serve. Additional
information is available at www.Altisource.com.
FOR FURTHER
INFORMATION CONTACT: |
|
Michelle D. Esterman |
Chief Financial Officer |
T: (770) 612-7007 |
E:
Michelle.Esterman@altisource.com |
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