|Bid||1.8100 x 1300|
|Ask||1.8200 x 1200|
|Day's Range||1.7450 - 1.8590|
|52 Week Range||0.5700 - 7.8200|
|Beta (5Y Monthly)||1.88|
|PE Ratio (TTM)||N/A|
|Earnings Date||Nov 10, 2020|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||4.65|
(Bloomberg) -- Exela Technologies Inc. is the latest debt-laden company that’s weighing tapping the hot credit markets to raise new funds and rework existing borrowings.The technology company is considering options including selling new first-lien bonds to refinance some of its more than $1 billion of obligations, according to people with knowledge of the matter who asked not to be named because the financing discussions are private.Exela has been discussing terms of a potential deal with different creditor groups, and is weighing one proposal in which proceeds from a bond offering would fund a new asset-based credit line and pay down existing first-lien debt, the people said.Talks with creditors are ongoing and terms of a deal could change as they continue, the people said. Groups were restricted from trading for a time but are no longer subject to non-disclosure agreements, they added.A representative from Irving, Texas-based Exela declined to comment. The company’s shares rose two cents Wednesday morning to trade at $2.05. Exela provides software and technology services to companies across industries including banking, health care, insurance and public sectors. The company employs 23,000 people in 23 countries, according to its website.Last year, Exela brought in UBS Group AG to explore “strategic alternatives” to strengthen its balance sheet. It has also worked with Guggenheim Securities as a financial adviser on previous deals.Exela’s liquidity has been strained in recent years as the company racks up losses. Its management has said on earnings calls that the company plans to cut debt by selling non-core assets. Exela reported $61 million of liquidity as of March 12.The technology company got some financial relief after it scored a $145 million loan from Angelo Gordon & Co. to pay down existing debt. In March, it raised roughly $27 million through a private investment in a public equity transaction.Exela has also been on a selling spree as part of a plan to offload certain businesses over two years. In early 2020, Exela sold its tax consulting group The company was also able to securitize account receivables before the Covid-19 pandemic took hold in the U.S.Exela’s had $1.4 billion of net debt at the end of last year. Its 10% bonds due 2023 trade for less than half of face value, at around 37 cents on the dollar, according to Trace bond trading data. Exela’s loan due 2023 is quoted around 41 cents on the dollar, according to data compiled by Bloomberg.(Updates with share price in fifth paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
The technology sector consists of businesses that develop, build, and market consumer electronics, electronic components, and software. Companies in the tech sector may also provide information technology (IT) services such as cloud computing. While the best-known companies are giants like Apple Inc. (AAPL) and Microsoft Inc. (MSFT), there also are tech businesses that are classified as penny stocks.
If you're looking at a mature business that's past the growth phase, what are some of the underlying trends that pop...