Exela Technologies Announces Plan to Deploy Over $ 400 Million of Capital to Execute Next Strategic Step: Dramatically Reduce Debt

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  • To date, Exela has purchased $ 95 million in debt, increasing its cash flow by $ 11 million
  • Exela on Track to Improve Annual Cash Flow by $ 25 Million
  • Every $ 100 million of debt reduction improves cash flow by $ 10 to $ 13 million

IRVING, Texas, September 30, 2021 (GLOBE NEWSWIRE) – Exela Technologies, Inc. (“Exela” or the “Company”) (NASDAQ: XELA), a global leader in business process automation across multiple industries, has announced today that the The company plans to deploy more than $ 400 million in capital. This decision sums up the company’s multi-faceted strategy to significantly reduce the total amount of its debt and associated interest expense, including reducing the cost of debt. The Company believes that the strengthened balance sheet and improved cash flow generation will further increase shareholder value.

In addition to cash of $ 207 million as of September 28, 2021, the recently announced equity financing proceeds are expected to provide the Company with more than $ 400 million of capital to deploy in this initiative. Exela plans to use these funds, among other things, for the purchase or repayment of debts, investment in their business and other general business purposes.

Exela’s weighted average interest rate on outstanding debt was 9.6% for fiscal 2020. Total debt-related payments (including cash interest paid and amortization) amounted to to $ 173 million for the 12 months ended December 31, 2020 and to $ 85 million for the 6 months ended. June 30, 2021, respectively. To date, the Company has already repurchased $ 95 million of debt through open market purchases using $ 64 million of cash. These executed debt purchases improved the Company’s annual cash flow by $ 11 million. Exela is also on track to meet the remainder of the previously announced $ 25 million annual cash flow improvement target over the next 3 months. Every $ 100 million of debt reduction improves additional annual cash flow between $ 10 million and $ 13 million, creating significant shareholder value.

By Chadha, Executive Chairman of Exela, said: “While we have made significant progress, we believe that executing this next step positions us well to continue to increase shareholder value. I am not satisfied with the speed of our capital deployment strategy and hope to accelerate it cautiously. We are grateful to our large and growing global shareholder base, employees and customers for becoming a global powerhouse with leading brand recognition in the industries we serve. “

Note: Liquidity as defined by the third addendum to the credit agreement effective May 15, 2020. Includes $ 24 million as additions.

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About Exela Technologies

Exela Technologies is a leader in Business Process Automation (BPA), leveraging a global presence and proprietary technology to deliver digital transformation solutions that improve quality, productivity and user experience. final. With decades of experience operating critical processes, Exela serves a growing list of over 4,000 clients in 50 countries, including over 60% of the Fortune® 100. Using core technologies spanning information management , workflow automation and integrated communications, Exela’s software and services include multisector and departmental solution suites dealing with finance and accounting, human capital management and legal management, as well as industry-specific solutions for banking, healthcare, insurance and the public sector. With cloud-enabled platforms, built on a configurable stack of automation modules, and more than 18,000 employees operating in 23 countries, Exela is rapidly deploying integrated technology and operations as a digital travel partner of end to end.

Forward-looking statements

Certain statements included in this press release are not historical facts but are forward-looking statements for the purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. Forward-looking statements are generally accompanied by words such as ” can “,” should “,” would “,” plan “,” intend “,” anticipate “,” believe “,” estimate “,” predict “,” potential “,” seem “,” seek “, “continue”, “future”, “will”, “expect”, “prospect” or other similar words, phrases or expressions. These forward-looking statements include statements about our industry, future events, estimated or anticipated future results and benefits, future opportunities for Exela and other statements that are not historical facts. These statements are based on the current expectations of Exela management and are not predictions of actual performance. These statements are subject to a number of risks and uncertainties, including, but not limited to, those discussed under “Risk Factors” in Exela’s annual report and other securities documents. movable. In addition, forward-looking statements provide Exela’s expectations, plans or forecasts regarding future events and opinions as of the date of this communication. Exela anticipates that subsequent events and developments will cause Exela’s valuations to change. These forward-looking statements should not be taken as representing Exela’s valuations as of a date subsequent to the date of this press release.

Investor and / or media contacts:

Vincent KondaveetiE: vincent.kondaveeti@exelatech.com Phone. : 929-620-1849

Mary Beth BenjaminE: IR@exelatech.com Phone. : 646-277-1216

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Source: Exela Technologies, Inc.



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