Exela Technologies Reports Significant Boost to Cash and Cash Equivalents to over $205 Million and Remains on Path to Delever...
July 07 2021 - 7:00AM
Exela Technologies, Inc. (“Exela” or the “Company”)
(NASDAQ:XELA), a location-agnostic global business process
automation (“BPA”) leader across numerous industries, today
announced that its recently announced $150 million at-the-market
equity program has significantly improved its liquidity position by
raising $85 million of proceeds. The Company plans to use certain
proceeds from the equity program to strategically reduce its debt
and associated interest expense obligations as well as explore ways
to invest in its growth, in line with the previously announced
strategic initiative. As an initial step, Exela intends to target
an annual debt service reduction of $25 million.
Shrikant Sortur, Exela’s Chief Financial
Officer, noted, “We are very encouraged by this overwhelming
support from our retail investors and our shareholders at large,
along with stabilizing business performance. The higher liquidity
will help us better leverage our tech enabled business services
model by enabling us to fund our growth. Furthermore, the targeted
$25 million permanent reduction in annual debt service creates
significant value to equity holders as the Company executes its
strategic deleveraging.”
As of June 30, 2021, the Company had over $205
million of cash and cash equivalents. The Company also had $75
million of additional borrowing capacity under various credit
facilities, which are available subject to terms and conditions. As
a result of the increased liquidity, the Company does not
anticipate accessing this additional available borrowing capacity
in the near term, including the $53 million available under its
$145 million A/R securitization.
Exela will provide more details regarding
additional steps under the strategic initiative on its upcoming
second quarter 2021 Financial Results Call.
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This press release shall not constitute an offer
to sell or the solicitation of an offer to buy the Company’s
securities, nor shall there be any sale of these securities in any
state or jurisdiction in which such offer, solicitation or sale
would be unlawful prior to registration or qualification under the
securities laws of any such state or jurisdiction.
About Exela Technologies
Exela Technologies is a business process
automation (BPA) leader, leveraging a global footprint and
proprietary technology to provide digital transformation solutions
enhancing quality, productivity, and end-user experience. With
decades of experience operating mission-critical
processes, Exela serves a growing roster of more than
4,000 customers throughout 50 countries, including over 60% of the
Fortune® 100.
With foundational technologies spanning
information management, workflow automation, and integrated
communications, Exela’s software and services include
multi-industry department solution suites addressing finance and
accounting, human capital management, and legal management, as well
as industry-specific solutions for banking, healthcare, insurance,
and public sectors. Through cloud-enabled platforms, built on a
configurable stack of automation modules, and over 18,300 employees
operating in 23 countries, Exela rapidly deploys
integrated technology and operations as an end-to-end digital
journey partner.
Forward-Looking Statements
This press release includes statements that are,
or may be deemed, “forward-looking statements” within the meaning
of Section 27A of the Securities Act, and Section 21E of
the Exchange Act and are intended to be covered by the safe harbor
provided for under these sections. Forward-looking statements
generally are accompanied by words such as “may,” “should,”
“would,” “plan,” “intend,” “anticipate,” “believe,” “estimate,”
“predict,” “potential,” “seem,” “seek,” “continue,” “future,”
“will,” “expect,” “outlook” or other similar words, phrases or
expressions. These forward-looking statements are based on the
current expectations of Exela’s management and are not predictions
of actual performance. These forward-looking statements are subject
to a number of risks and uncertainties regarding Exela’s
businesses, and actual results may differ materially. The factors
that may affect Exela’s financial condition and results of
operations include, among others, (i) the impact of political and
economic conditions on the demand for Exela’s services, (ii) the
impact of the COVID-19 pandemic, (iii) the impact of the petition
for appraisal pursuant to 8 Del. C. § 262 in the Delaware Court of
Chancery, captioned Manichaean Capital, LLC, et al. v. SourceHOV
Holdings, Inc., C.A. No. 2017 0673 JRS, (iv) the impact of a data
or security breach, (v) the impact of competition or alternatives
to Exela’s services on its business pricing and other actions by
competitors, (vi) Exela’s ability to address technological
development and change in order to keep pace with its industry and
the industries of its customers, (vii) the impact of terrorism,
natural disasters or similar events on Exela’s business, (viii) the
effect of legislative and regulatory actions in the United States
and internationally, (ix) the impact of operational failure due to
the unavailability or failure of third-party services on which
Exela relies, (x) the effect of intellectual property infringement
and (xi) other risk factors described from time to time in Exela’s
Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and
Current Reports on Form 8-K, including any amendments or
restatements of, or supplements to, such reports.
Investor and/or Media Contacts:
Vincent
KondaveetiE: vincent.kondaveeti@exelatech.comT:
929-620-1849
Mary Beth BenjaminE: IR@exelatech.comT:
646-277-1216
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