Business
Altisource Announces Preliminary Fourth Quarter and Full Year 2022 Financial Results and Agreement With Lenders Holding Approximately 98% of the Company’s Term Loans for a Term Loan Amendment and Maturity Extension Transaction
Improved 2022 Gross Profit Margins to 15% from 4% in 2021 and Improved 2022 Adjusted EBITDA by $15 million Compared to 2021 Executed Transaction Support
About this update from Altisource Portfolio Solutions S.a.
[{"type":"text","content":"Improved 2022 Gross Profit Margins to 15% from 4% in 2021 and Improved 2022 Adjusted EBITDA by $15 million Compared to 2021 Executed Transaction Support Agreement with Lenders Holding Approximately 98% of the Company’s Existing Term Loans to Exchange the Existing Term Loans for Exchange First Lien Loans with a Maturity Date of April 2025 and an Option to Extend to April 2026 LUXEMBOURG, Feb. 03, 2023 (GLOBE NEWSWIRE) -- Altisource Portfolio Solutions S.A. (“Altisource” or the “Company”) (NASDAQ: ASPS), a leading provider and marketplace for the real estate and mortgage industries, today reported preliminary financial results for the fourth quarter and full year 2022. Altisource also announced that it entered into a transaction support agreement including a term sheet (the “Transaction Support Agreement”) with lenders holding approximately 98% of the Company’s term loans (the “Existing Term Loans”) that sets forth the principal terms of, among other things, a proposed refinancing of the Company’s Existing Term Loans and exchanging the Existing Term Loans for Exchange First Lien Loans with a maturity date of April 2025 and an option to extend to April 2026, subject to certain terms and conditions, execution of definitive agreements and approval of lenders holding the requisite amount of the Company’s Existing Term Loans. The Company is engaged in outreach with the remaining lenders to obtain their agreement. This description of the Transaction Support Agreement is not complete and is qualified in its entirety by reference to the Transaction Support Agreement, a copy of which is attached as an exhibit to the Altisource 8-K dated February 3, 2023. “I am pleased with our preliminary full year and fourth quarter performance as we execute on our plan to recover from the impact of the pandemic. For the year, we reduced our preliminary Adjusted EBITDA loss by $15.0 million and improved gross profit margins to 15% from 4% in 2021. For the fourth quarter, we generated $0.6 million of preliminary Adjusted EBITDA, a $9.4 million improvement compared to the fourth quarter 2021. I am also pleased that we executed the Transaction Support Agreement with lenders holding approximately 98% of the Company’s Existing Term Loans to amend and extend our senior secured term loan facility,” said Chairman and Chief Executive Officer William B. Shepro. Mr....