- KLDiscovery (OTCPK:KLDI) on Monday announced that it has signed a transaction support agreement with debenture holders, term loan lenders, revolving credit facility lender, and largest shareholder to strengthen balance sheet and reduce debt, positioning the company to execute its long-term strategic plan
- Under the agreement, KLDiscovery’s outstanding convertible notes will be cancelled and exchanged for new shares representing about 96% of the company’s pro forma outstanding common equity and the maturity of the company’s term loan will be extended to August 2027.
- This transaction will result in both a meaningful reduction in KLDiscovery’s overall debt and the successful elimination of its near-term debt maturities.
- The documentation also contemplates KLDiscovery receiving committed second lien secured financing to support future operations and growth.
- Transaction expected to close in the third quarter of 2024.
- Source: Press Release
2024-07-08