Exela Technologies Provides Update on Capital Deployment Strategy
IRVING, Texas, Aug. 03, 2022 (GLOBE NEWSWIRE) -- Exela Technologies, Inc. (“Exela” or “Company”) (NASDAQ: XELA, XELAP) today announced an update to its Capital Deployment Strategy (the “Strategy”) that was previously announced June 6, 2022. Exela has established XCV-STS, LLC (“STS” or “Serve the Shareholders”) to hold assets to be used for implementing the Strategy. The Company has purchased $70 million of face value 2026 Senior Secured Notes at a discount with funds raised from equity. This will be the first contribution into STS. Interest paid on the Notes contributed to STS, together with additional anticipated contributions of the proceeds from the planned asset sales announced as part of the Strategy and other surplus cash will be set aside and used to create and return value to shareholders.
“Today’s announcement is an important part of our recently initiated Capital Deployment Strategy to Serve the Shareholders. We continue to believe that every part of our capital structure is inappropriately valued . STS will allow us to continue to hunt for rewarding opportunities,” noted Par Chadha, Executive Chairman Exela. “We look forward to sharing more business updates on our upcoming earnings call.”
The successful implementation of our Strategy is dependent upon obtaining appropriate approvals of various internal and external stakeholders, the successful sale of certain stand-alone assets, and other factors, many of which are outside of our control. Although the Company believes it will be able to obtain such approvals and will be successful in its endeavors, it cannot provide any assurances that it will be successful in obtaining such approvals or in effectively implementing and timely completing the Strategy, or that successful completion of the Strategy will have the desired impact.
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About Exela Technologies
Mary Beth Benjamin