Exela Technologies Inc (NASDAQ: XELA) Cash and Cash Equivalents Scale Higher by Almost $205 Million

Exela Technologies Inc (NASDAQ: XELA) considers its recently announced equity program to be a great addition to its business. It was a $150 million at-the-market equity program that achieved $85 million of proceeds. It is quite pleased about its improved liquidity position and has started making plans.

Planning into the future

Exela Technologies Inc has confirmed that it will use a section of its proceeds in debt repayment. As a result, it hopes to cut down a significant chunk of its existing debt and the associated interest expense obligations. The other thing will be to make some particular moves geared towards boosting its business growth. It starts with the reduction of its annual debt service, slashing it by $25 million.

Shrikant Sortur speaks out

Exela’s Chief Financial Officer, Shrikant Sortur, thanks to all their retail investors and our shareholders for their support over the years. He believes that their contributions have helped a lot towards the stabilization of their business performance. 

He opines, “The higher liquidity will help us better leverage our tech enabled business services model by enabling us to fund our growth. Furthermore, the targeted $25 million permanent reduction in annual debt service creates significant value to equity holders as the company executes its strategic deleveraging.”

As of June 30, 2021, Exela’s financial statement indicated about $205 million in cash and cash equivalents. The statement also indicated its expanded borrowing capacity with numerous credit facilities. As a result, it was an additional $75 million of additional borrowing capacity. However, the company must conform to the terms and conditions guiding such transactions. 

Exela might not be able to access its additional available borrowing capacity any time soon. However, it won’t do so in the near term because of its increased liquidity.

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