Altisource Portfolio Solutions S.a. · NASDAQ:ASPS
Altisource Portfolio Solutions — Investor Presentation (December 2024)
19 slides from Altisource Portfolio Solutions's investor presentation, Dec 17, 2024
Slide 1: Altisource Debt Related Agreements
ALTISOURCE DEBT RELATED AGREEMENTS DECEMBER 17, 2024 1
Slide 2: Altisource Overview
ALT IS OURCE OVERV IEW This presentation contains forward-looking statements that involve a number of risks of the anticipated increase in default related referrals following the expiration of and uncertainties. These forward-looking statements include all statements that are foreclosure and evictio
Slide 3: Non-GAAP Measures
NON-G AAP MEA SURES Adjusted earnings before interest, taxes, depreciation and amortization (“EBITDA”), accordance with GAAP. Each non-GAAP financial measure is presented along with the Adjusted EBITDA, Net Debt and Interest-bearing Net Debt, which are presented corresponding GAAP measure so as not
Slide 4: Summary of Contemplated Transactions
SUMMARY OF CONTEMPLATE D TRANSACTIONS 1 • Executed a binding transaction support agreement, which includes a term sheet (the “Agreement”), with lenders holding approximately 99% of the Company’s term loans (the “Existing Term Loans”) that sets forth the principal terms of, among other things, a prop
Slide 5: Key Features of Contemplated Transactions
KE Y FEATURES OF CONTEMP LAT ED TRA NSACTION S 1 Reduces Debt by $58 Million • Reduces Company’s outstanding debt obligations by 25% from $231 million (as of December 17, from $231 Million to $173 2024) to $172.5 million (at transaction closing), comprised of: Million ₋ $110 million interest-bearing
Slide 6: Key Features of Contemplated Transactions
KE Y FEATURES OF CONTEMP LAT ED TRA NSACTION S 1 Maintains Covenant-Lite • Maintains covenant-lite structure and no financial covenants, consistent with the Existing Term Structure Loans Provides Equity to Lenders • Provides lenders under the New Facility with approximately 57.9 million common share
Slide 7: Credit Facility – Summary of Terms
CRE DIT FACILIT Y – SUMMARY OF TERMS Exchange First Lien Loans $110 million Interest Rate on Exchange First Lien Loans SOFR + 6.50% (3.50% SOFR Floor), payable quarterly in cash Exit Fee on Exchange First Lien Loans $50 million payable on Maturity Date1 Exit Fee Interest Rate None Maturity Date Apri
Slide 8: Super Senior Facility – Summary of Terms
S U PE R S E N IO R FACI LI TY – S UMM A RY O F T E R MS Super Senior Credit Facility $12.5 million Use of Proceeds Transaction costs and general corporate purposes Original Issue Discount 10.0% Interest Rate on Super Senior Credit Facility SOFR + 6.50% (3.50% SOFR Floor), payable quarterly in cash
Slide 9: Pro Forma Capitalization Summary
PRO FORMA CA PITAL IZATION S UMMARY 1 Transaction Expected to Initially be Accretive as the Reduction in Debt Exceeds the Impact from the Grant of New Equity to Lenders As of Contemplated Pro (in 000s) 12-13-24 Transactions Forma2 Debt Outstanding: New Debt (Interest-bearing) $ 230,590 $ (120,590) $
Slide 10: Credit Metrics Pro Forma for New Debt
CRE DIT METRICS PRO FORMA FOR NEW DEBT 1 Transaction Would Substantially Improve Company’s Leverage and Debt Service Coverage Ratios; These Metrics Would Further Improve if Net Debt Declines from Excess Cash Flow and Proceeds Received from the Cash Exercise of Stakeholder Warrants As of Contemplated
Slide 11: Illustration – Exercise of Stakeholder Warrants
ILLUSTRATION – EX ERCISE OF STAKE HOL DER WARRANTS 1 Transaction Should Substantially Improve the Company’s Balance Sheet and Provide Current Shareholders the Potential for Value Creation through Future Increased Ownership of the Company Should the Share Price Increase (in 000s) Illustrative Adjuste
Slide 12: Next Steps
NEX T STE PS • Our next steps include, among other things: - Filing a preliminary proxy statement with the SEC to seek the shareholder approvals necessary to facilitate the transactions described in the Agreement (the “Required Approvals”) - Negotiating definitive documents - Holding a meeting of sh
Slide 13: Key Focus Areas
KE Y FOCUS AREA S • As we look to the future, we are focusing on growing and diversifying our revenue streams and customer base - Maintaining efforts to deliver and grow our default related services - Increasing our focus on our businesses that are less reliant on the default market • Origination so
Slide 14: Summary
SUMMARY • We have improved Net Cash Used in Operating Activities by more than $55 million1 since 2021 - Reduced costs and grew sales wins during an extremely challenging multi-year environment for the residential default mortgage services industry • We believe the transactions contemplated by the Ag
Slide 15: Appendix
APPENDIX © 2024 Altisource All Rights Reserved. 15
Slide 16: Non-GAAP Measures
NON-GAAP MEASURES EBITDA, Adjusted EBITDA and Net Debt are non-GAAP measures used by management, existing shareholders, potential shareholders and other users of our financial information to measure Altisource’s performance and do not purport to be alternatives to net income (loss) attributable to A
Slide 17: Non-GAAP Measures
NON-GAAP MEASURES Reconciliation As of Contemplated Pro ($ in millions) 12-13-24 Transactions Forma1 Long-term debt, including current portion $ 230.6 $ 58.1 $ 172.5 Less: Non-interest bearing long-term debt, including current portion - 50.0 (50.0) Cash and cash equivalents (29.0) 6.3 (35.3) Interes
Slide 18: Investor Relations Information
I N V E S T O R R E L AT I O N S I N F O R M AT I O N Altisource Portfolio Solutions S.A. is an integrated service provider and marketplace for the real estate and mortgage ABOUT ALTISOURCE industries. Combining operational excellence with a suite of innovative services and technologies, Altisource
Slide 19: Altisource
a x Altisource YOUR ONE SOURCE™
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