Altisource Portfolio Solutions, a provider and marketplace for the real estate and mortgage industries, executed an amendment to the company’s term loans on Feb. 9, which the parties anticipate will close on Feb. 14. The term loan amendment, among other things, extends the maturity date to April 2025 with an option to extend to April 2026, subject to certain prepayment and other terms and conditions.
Altisource also executed an amendment to the company’s revolving credit agreement with STS Master Fund on Feb. 9, which is also scheduled to close on Feb. 14. The revolving credit agreement amendment provides a revolving credit facility of $15 million with a maturity date coterminous with the term loan amendment maturity date, as it may be extended.
The company believes the execution of the term loan amendment and revolving credit agreement amendment are important steps to help position the company for future success as Altisource’s largest and most profitable segment benefits from the anticipated recovery of the residential default-related market following the expiration of the pandemic related borrower relief measures.
The company intends to use proceeds from its recently announced sale of common stock, which is expected to close on or about Feb. 14, for repayment of certain indebtedness and, potentially, for working capital. Such use of proceeds would reduce the company’s interest expense and, depending upon the amount and timing of the principal amount repaid on the term loans, could also reduce the payment-in-kind interest rate and number of warrants granted to the term loan lenders under the term loan amendment.
