Sungard Availability Services Enters Into Comprehensive Restructuring Support Agreement With A Majority Of Its Creditors
Company Expects Business As Usual During Expedited “Pre-Packaged” Chapter 11 Reorganization
WAYNE, Pa.—April 2, 2019—Sungard Availability Services (Sungard AS) today announced that it has entered into a consensual agreement with a majority of its creditors to reduce Sungard AS’ debt by over two-thirds. This agreement creates a sustainable capital structure to support the Company’s investment and growth plans, as well as enhances its overall financial position.
“A diverse group of lenders came together very quickly, reaching an agreement that results in an appropriate capital structure that enables us to continue focusing on operating and growing our business,” said Andrew A. Stern, Chief Executive Officer, Sungard Availability Services. “Our creditors recognize the value in what we’ve built, and are investing new capital into the business. Sungard AS will emerge from this process as a much stronger company, continuing to service existing and new customers well into the future.”
Through the restructuring process, Sungard AS will continue to operate in the normal course of business, including delivering the high levels of service its customers expect and making planned investments in its fully resilient production and recovery solutions portfolio, all delivered by the Company’s team of seasoned professionals. The restructuring contemplated by the Restructuring Support Agreement (RSA) is funded by a $100 million credit facility, which will provide the liquidity necessary to continue to implement the Company’s business plan, including funding working capital and operational and capital expenditures during the expedited restructuring process. Once the restructuring is complete, Sungard AS’ creditors will own the Company’s equity.
On Monday, April 1, 2019, Sungard AS published a notice to its investors announcing a RSA with a majority of its creditors and the Company’s equity sponsors to restructure and reduce its debt. In order to effectuate the reduction in debt, the company will enter a “pre-packaged” chapter 11 bankruptcy filing on or around May 1. With over 75% of the secured lenders and over 85% of the noteholders already committed to vote to accept and/or support the Plan, the Company expects to emerge from bankruptcy very shortly after filing.
During this process, Centerview Partners has been retained as investment banker to Sungard AS, Kirkland & Ellis LLP has been retained as legal counsel, and AlixPartners has been retained as the Company’s financial advisor.
About Sungard Availability Services
Sungard Availability Services (“Sungard AS”) is a leading provider of critical production and recovery services to global enterprise companies. Sungard AS partners with customers across the globe to understand their business needs and provide production and recovery services tailored to help them achieve their desired business outcomes. Leveraging more than 40 years of experience, Sungard AS designs, builds and runs critical IT services that help customers manage complex IT, adapt quickly and build resiliency and availability. To learn more, visit www.sungardas.com or call 1-800-468-7483. Connect with us on Twitter, LinkedIn and Facebook.
Vice President, Global Corporate Communications
Sungard Availability Services
SVP, Public Relations
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Any statements contained in this press release that are not statements of historical fact, including statements about our beliefs and expectations, are forward-looking statements and should be evaluated as such. The words "anticipates," "believes," "expects," "intends," "plans," "estimates," "targets," "projects," "should," "may," "will," statements regarding future timing of a Chapter 11 proceeding and similar words and expressions are intended to identify forward-looking statements, as defined within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements reflect, among other things, our current expectations, plans and strategies, and anticipated financial results, all of which are subject to known and unknown risks, uncertainties and factors that may cause our actual results to differ materially from those expressed or implied by these forward-looking statements. Many of these risks are beyond our ability to control or predict. Because of these risks, uncertainties and assumptions, you should not place undue reliance on these forward-looking statements. Furthermore, forward-looking statements speak only as of the date they are made. We do not undertake any obligation to update or review any forward-looking information, whether as a result of new information, future events or otherwise.