Altisource Announces Intention to Repay $10 Million of Its Debt

LUXEMBOURG, Sept. 12, 2023 (GLOBE NEWSWIRE) -- Altisource Portfolio Solutions S.A. (“Altisource” or the “Company”) (NASDAQ: ASPS), a leading provider and marketplace for the real estate and mortgage industries, announces it provided notice to lenders under the Company's senior secured term loan (“SSTL”) that it intends to repay $10 million of the SSTL using proceeds from Altisource’s recently closed public offering of common stock.

“We believe reducing the principal balance of the SSTL by $10 million should be accretive for shareholders as it reduces the number of shares exercisable under outstanding penny warrants by almost one million shares and reduces annual interest expense by approximately $3.4 million based on current interest rates. In addition, this repayment provides the Company with the option to extend the maturity date of the SSTL and revolving credit facility by one year to April 2026 subject to the Company’s payment of a 2% payment-in-kind extension fee and other conditions,” said William B. Shepro, Chairman and Chief Executive Officer of Altisource.

The following summarizes the changes to the terms of the SSTL based on the anticipated $10 million repayment:

	At February 2023								Following $10
	SSTL Amendment				As of June 30, 2023				Million repayment
Unpaid principal balance (in 000s)1	$	247,204			$	229,760			$	219,760
Warrant Shares2		3,223,851				2,578,743				1,612,705
Payment-in-kind Interest Rate		5.00	%			4.50	%			3.75	%
Maturity Date	April 2025				April 2025				April 2025 with the option to extend to April 2026 exercisable prior to the current maturity date3

1. The unpaid principal balance following the $10 million repayment excludes payment-in-kind interest that accrues between June 30, 2023 and the $10 million repayment date
2. On February 14, 2023, the lenders under the Amended SSTL received warrants to purchase 3,223,851 shares of Altisource common stock with an exercise price equal to $0.01 per share of common stock (the “Warrant Shares”). The number of Warrant Shares is subject to reduction based on the amount of par paydowns on the SSTL in the aggregate using proceeds from issuances of equity interests or from junior indebtedness made prior to February 14, 2024
3. Following the $10 million repayment, the maturity date of the SSTL may be extended at the Company’s option to April 30, 2026 (subject to the representations and warranties being true and correct as of such date and there being no default or event of default being in existence as of such date). Such extension is conditioned upon the Company’s payment of a 2% payment-in-kind extension fee. The maturity date of the revolving credit facility coincides with the maturity date of the SSTL, as it may be extended

The SSTL and the Warrant Shares are described in detail in the Altisource Form 8-K dated February 9, 2023 and the Altisource Form 8-K dated February 21, 2023, respectively.