Exela Technologies Announces Plans to Deploy over $200 Million in Expected Proceeds for the Next Step in Capital Deployment Strategy: Seek approval for share buyback, dividends, debt repurchase and sale of assets
June 06 2022 - 8:20AM
Exela Technologies, Inc. (“Exela” or the “Company”) (NASDAQ: XELA,
XELAP) today announced the next step in its multipart Capital
Deployment Strategy (“Strategy”), previously announced on September
30, 2021 as part of a broader mandate to maximize shareholder
value, proactively negotiate our remaining debt maturities and
reduce the overall amount of debt along with repurchases of common
stock. The Company remains focused on strengthening its financial
foundation for improved cash flow generation which is essential for
shareholder value expansion.
The Company’s Strategy calls for initiating sale processes for
several stand-alone assets that are expected to generate proceeds
in excess of $200 million. The Company may supplement this effort
by raising lower cost debt and equity capital utilizing currently
effective registration statements.
“We are close to finishing the first step of
what we announced last September and our plans now include sales of
assets as an incremental source of capital, with the ultimate goal
of initiating a stock buyback program in the future, and returning
capital to shareholders. We are thankful to our large, global
shareholder base, our employees and our customers as we roll out
the next step in our Strategy for 2022 and beyond,” noted Par
Chadha, Executive Chairman.
The successful implementation of our Strategy is
dependent upon obtaining appropriate approvals of various internal
and external stakeholders, successful sale of the 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.
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. 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 approximately 17,000 employees operating in
23 countries, Exela rapidly deploys integrated technology
and operations as an end-to-end digital journey partner
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.
Forward-Looking Statements
Certain 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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