Exela Technologies Provides Update on Capital Deployment Strategy
August 03 2022 - 4:05PM
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.
For more Exela news, commentary, and industry
perspectives,
visit: https://investors.exelatech.com/
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The information posted on the Company's website and/or via its
social media accounts may be deemed material to investors.
Accordingly, investors, media and others interested in the Company
should monitor the Company's website and its social media accounts
in addition to the Company's press releases, SEC filings
and public conference calls and webcasts.
About Exela TechnologiesExela 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 60%
of the Fortune® 100. Utilizing foundational technologies spanning
information management, workflow automation, and integrated
communications, Exela’s software and services include
multi-industry, departmental solution suites addressing finance and
accounting, human capital management, and legal management, as well
as industry-specific solutions for banking, healthcare, insurance,
and the public sector. Through cloud-enabled platforms, built on a
configurable stack of automation modules,
and approximetly 17,000 employees operating in 23
countries, Exela rapidly deploys integrated technology
and operations as an end-to-end digital journey partner.
Forward-Looking StatementsCertain statements included in this
press release are not historical facts but are forward-looking
statements for purposes of the safe harbor provisions under The
Private Securities Litigation Reform Act of 1995.
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
include statements regarding 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 without limitation those discussed under
the heading "Risk Factors" in Exela's Annual Report and
other securities filings. In addition, forward-looking statements
provide Exela's expectations, plans or forecasts of
future events and views as of the date of this
communication. Exela anticipates that subsequent events
and developments will cause Exela's assessments to
change. These forward-looking statements should not be relied upon
as representing Exela's assessments as of any date
subsequent to the date of this press release. Investor
and/or Media Contacts:Vincent
KondaveetiE: vincent.kondaveeti@exelatech.com
Mary Beth BenjaminE: IR@exelatech.com
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