We advised an ad hoc group of term loan lenders on the transaction

Davis Polk advised an ad hoc group of term loan lenders in connection with an exchange and maturity extension of Altisource Portfolio Solutions S.A.’s term loans.

Through the exchange and maturity extension, Altisource reduced its outstanding debt obligations by about 25%, from $232.8 million to $172.5 million. The lenders exchanged their existing term loans for (i) a $110 million interest-bearing first-lien loan with a five-year maturity extension and associated non-interest-bearing exit fee of $50 million and (ii) 63.5% of Altisource’s pro forma outstanding shares. Altisource is also the borrower under a new $12.5 million super senior credit facility. Pre-transaction Altisource shareholders, penny warrant holders and restricted stock unit holders also received warrants in the transaction.

Altisource is a leading integrated service provider and marketplace for the real estate and mortgage industries. Altisource provides technology and innovative solutions to mortgage servicing and origination clients, as well as buyers and sellers of single-family residential real estate.

The Davis Polk restructuring team included partners Damian S. Schaible and Natasha Tsiouris and associates David Kratzer and Kyle Kreider. The restructuring finance team included counsel Jon Finelli and associates Alexander K.B. Shimamura and Luke F. Porcari. The capital markets team included partner Roshni Banker Cariello and associate Benjamin Guillon. Partner Randall Derek Walters and counsel Justin Michael provided equity derivatives advice. Counsel Jacob S. Kleinman and associate Roderick (Lidong) Sheng provided corporate advice. The tax team included partner Corey M. Goodman, counsel Tracy L. Matlock and associate Yueyu Yang. All members of the Davis Polk team are based in the New York office.

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