Exela Technologies, a global business process automation leader, obtained $51 million of new funding from B. Riley Commercial Capital (BRCC) and an affiliate of BRCC through a combination of an amendment of the company’s existing $150 million PNC securitization facility to permit the addition of $35 million of junior secured financing, a separate sale of receivables and an increase in availability under a revolving line of credit. The new securitization facility matures in June 2025 and bears interest at a per annum rate of one-month Term SOFR plus 7.5%.
These financings provided an additional $51 million of funding in February with an additional $4 million available subject to certain financial measurements. In connection with these transactions, a subsidiary of Exela prepaid $29 million of its existing BRCC term loan, reducing the outstanding term loan balance to approximately $15 million. The company plans to use the incremental liquidity for general corporate purposes, debt obligations and transaction expenses.
The company also purchased $13.4 million of 2023 unsecured notes in accordance with its previously announced capital deployment strategy. Combined with the $29 million reduction of BRCC term loan, the prepayment and purchase resulted in reducing 2023 maturities on a consolidated basis by $42.4 million.
