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Altisource Announces That It Made a $20 Million Par Paydown on Its Term Loans
Debt repayment reduces PIK Interest and Warrant Shares LUXEMBOURG, Feb. 23, 2023 (GLOBE NEWSWIRE) -- Altisource Portfolio Solutions S.A. (“Altisource” or the
About this update from Altisource Portfolio Solutions S.a.
[{"type":"text","content":"Debt repayment reduces PIK Interest and Warrant Shares LUXEMBOURG, Feb. 23, 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 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 PaydownsPIK InterestWarrant Shares Less than $20 million5.00%3,223,851 $20 million or more but less than below4.50%2,578,743 $30 million or more but less than below3.75%1,612,705 $40 million or more but less than below3.50%1,612,705 $45 million or more but less than below3.00%1,612,705 $50 million or more but less than below2.50%1,612,705 $55 million or more but less than below2.00%1,612,705 $60 million or more but less than below1.00%1,612,705 $65 million or more but less than below0.50%1,612,705 $70 million or more0.00%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,” “...