- Recapitalization reduced debt by 91% and was supported by holders of over 99% of notes
- New capital structure provides foundation for future growth and strategic opportunities
LAKE FOREST, ILLINOIS – MAY 23, 2018: Transworld Systems Inc. (“TSI” or the “Company”) – the nation’s leading analytics-driven provider of accounts receivable management, healthcare revenue cycle, and loan servicing solutions – today completed a comprehensive financial restructuring of the Company’s debt and equity.
The recapitalization was implemented via a voluntary, out-of-court transaction and did not impact TSI’s customers, operations, facilities, or employees.
The restructuring decreased the Company’s outstanding debt by approximately $460 million, or 91%, through (i) an exchange of the Company’s 9.5% Senior Notes due 2021 (the “Notes”) for new debt and new common equity, (ii) a partial repayment and extension of the Company’s revolving credit facility, and (iii) a $39 million equity capital injection into the Company.
“The successful completion of this transaction provides TSI with significant financial flexibility to invest in the business to drive growth,” said Joe Laughlin, CEO of TSI. “We are pleased to partner with Clearlake Capital, Platinum Equity and our other new equity holders. I would like to thank our customers, employees, vendors and regulators for their patience and support as we moved through this process.”
TSI is the leading provider of outsourced accounts receivable management, healthcare revenue cycle management and loan servicing solutions. TSI uses predictive analytics to collect on debt to help their customers accelerate cash flow and improve operational efficiency. Their clients include Fortune 100 corporations, hospitals, financial institutions, governmental organizations, and small businesses.
Important Information About The Recapitalization
The new securities issued pursuant to the financial restructuring transaction have not been and will not be registered under the Securities Act of 1933, as amended (the “Securities Act”), or any state securities laws. Therefore, the new securities may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and any applicable state securities laws.
This press release does not constitute an offer to sell or buy, nor the solicitation of an offer to sell or buy, any securities referred to herein. Any solicitation or offer will only be made pursuant to an offering memorandum and disclosure statement and only to such persons and in such jurisdictions as is permitted under applicable law.
Cautionary Statement Regarding Forward-Looking Statements
This press release contains forward-looking statements. These forward-looking statements are subject to risks, uncertainties and other factors that could cause TSI’s actual results to differ materially from those expressed or implied by these forward-looking statements. All forward-looking statements speak only as of the date on which such statements are made and the Company disclaims any duty to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law.
Chief Financial Officer
Transworld Systems Inc.
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