- Tranche 2 upsized by $7
million to provide enhanced financial runway to
support Atento's restructuring following substantial interest from
existing investors
- Participation in Tranche 2 reflects incremental support for
the Restructuring Support Agreement
- Upsizing of Tranche 2 financing brings total committed
interim funding to the $37 million
originally contemplated
NEW
YORK, Aug. 1, 2023 /PRNewswire/ -- Atento S.A.
(NYSE: ATTO, "Atento" or the "Company"), one of the world's largest
providers of customer relationship and business process outsourcing
(CRM/BPO) services and an industry leader in Latin America, today announced that it has
received $17 million in tranche 2
funding under its interim financing arrangements announced on
23 June 2023, through the issuance
of additional new money notes due 2025.
The originally contemplated tranche 2 funding of $10 million was upsized by $7 million as a result of substantial additional
interest among existing creditors to participate in the
transaction. This brings the total committed interim funding to the
$37 million originally contemplated.
The tranche 2 funding provides enhanced liquidity and financial
runway to Atento to support the implementation of the
comprehensive restructuring of the business via a
restructuring plan (the "Restructuring"). The Restructuring
is expected to deleverage Atento's balance sheet significantly and
allow the business to raise substantial new funding to facilitate
future growth, in line with the Restructuring Support Agreement
(the "RSA") announced on 3 July
2023. Upon Completion, the Restructuring is expected to
drive Atento to a net debt leverage ratio of approximately 1.0x or
lower.
Expanded participation in the tranche 2 funding reflects the
continuing support of the Restructuring by Atento's financial
stakeholders, with increased accession to the RSA by additional
parties bringing the number of the supportive holders of Atento's
senior secured notes due 2026 (the "2026 Notes") to
approximately 52 % of the principal amount of those notes. Atento
remains in discussions with a number of additional holders of the
2026 Notes, with a view to obtaining further support for the
Restructuring in the coming weeks, including the potential
participation of such holders in the exit financing contemplated by
the RSA upon consummation of the Restructuring. To date Atento has
received substantial interest in participating in the exit
financing from both supportive holders of the 2026 Notes and from
other holders of 2026 Notes.
Atento, with the unanimous support of the supportive holders of
Atento's 2026 Notes, has also extended the term of Mark Nelson-Smith, who was appointed as a
Non-Executive Director of the Company on May
23, 2023, through the consummation of the Restructuring to
facilitate implementation of the Restructuring.
Atento continues to focus on executing its transformation plan,
including geographical expansion and the development of new
Artificial Intelligence capabilities, as it remains on track to
fulfilling the key milestones under the RSA towards the
implementation of the Restructuring.
About Atento
Atento is the largest provider of customer relationship
management and business process outsourcing ("CRM BPO") services in
Latin America and one of the
leading providers worldwide. Atento is also one of the leading
providers of nearshoring CRM BPO services for companies operating
in the United States. Since 1999,
the Company has developed its business model in 16 countries,
employing approximately 135,000 people. Atento has more than 400
clients, offering a wide range of CRM BPO services through multiple
channels. Atento's clients are mostly leading multinational
companies in telecommunications, banking and financial services,
healthcare, retail and public administration sectors. In 2019,
Atento was named one of the 25 best multinational companies in the
world and one of the best multinationals to work for in
Latin America by Great Place to
Work®. In addition, in 2021, Everest named Atento as a "star
performer". Gartner has named the Company two consecutive years a
leader in its Magic Quadrant since 2021. For more information visit
www.atento.com
Media Contact
press@atento.com
Forward-Looking Statements
This press release contains forward-looking statements.
Forward-looking statements can be identified by the use of words
such as "may," "should," "expects," "plans," "anticipates,"
"believes," "estimates," "predicts," "intends," "continue" or
similar terminology. These statements reflect only Atento's current
expectations and are not guarantees of future events. These
statements are subject to risks and uncertainties that could cause
actual results and events to differ materially from those contained
in the forward-looking statements. Such risks and uncertainties
include, but are not limited to: Atento's ability to negotiate and
execute any further definitive documentation with respect to the
restructuring transaction and to satisfy all the conditions of the
restructuring support agreement; ultimate outcome of the
restructuring proceedings, the trading price and volatility of the
Atento's common stock and warrants and the effects of the expected
delisting from the NYSE; actions by Atento's lenders and other
financing sources, including any creditor actions that could impact
Atento's operations; Atento's ability to improve its capital
structure and to address its debt service obligations through the
proposed restructuring transaction, including potential adverse
effects of any potential bankruptcy proceedings on Atento's
liquidity and results of operations; Atento's future cash
requirements; competition in Atento's highly competitive
industries; increases in the cost of voice and data services or
significant interruptions in these services; Atento's ability to
keep pace with its clients' needs for rapid technological change
and systems availability; the continued deployment and adoption of
emerging technologies; the loss, financial difficulties or
bankruptcy of any key clients; the effects of global economic
trends on the businesses of Atento's clients; the non-exclusive
nature of Atento's client contracts and the absence of revenue
commitments; security and privacy breaches of the systems Atento
uses to protect personal data; the cost of pending and future
litigation; the cost of defending Atento against intellectual
property infringement claims; extensive regulation affecting many
of Atento's businesses; Atento's ability to protect its proprietary
information or technology; service interruptions to Atento's data
and operation centers; Atento's ability to retain key personnel and
attract a sufficient number of qualified employees; increases in
labor costs and turnover rates; the political, economic and other
conditions in the countries where Atento operates; changes in
foreign exchange rates; Atento's ability to complete future
acquisitions and integrate or achieve the objectives of its recent
and future acquisitions; future impairments of Atento's substantial
goodwill, intangible assets, or other long-lived assets; and
Atento's ability to recover consumer receivables on behalf of its
clients. Atento is also subject to other risk factors described in
documents filed by the Company with the United States Securities
and Exchange Commission. These forward-looking statements speak
only as of the date on which the statements were made. Atento
undertakes no obligation to update or revise publicly any
forward-looking statements, whether as a result of new information,
future events or otherwise.
View original content to download
multimedia:https://www.prnewswire.com/news-releases/atento-announces-drawdown-of-17-million-in-tranche-2-funding-under-its-new-interim-financing-301890798.html
SOURCE Atento S.A.