Constellis Announces Successful Completion of De-Levering and Recapitalization

March 31, 2020

Source: Yahoo Finance

Constellis (or "the Company"), a leading provider of essential risk management and mission support services to government and commercial customers worldwide, announced today the successful completion of a comprehensive debt de-levering and recapitalization transaction with consent from 100% of its term loan and revolving lenders. As a result of the debt-for-debt and debt-for-equity exchanges, Constellis has significantly strengthened its balance sheet, reducing its debt by approximately $1.1 billion and annual cash interest payments by up to $90 million, while adding up to $50 million in new capital to support operations.

"This transaction is a significant milestone in our transformation of Constellis, strengthening our company financially and positioning the business for the long term," said Tim Reardon, Chief Executive Officer of Constellis. "Constellis is poised for growth and continued success, and we will leverage the backing of our stakeholders and this capital support to drive the next evolution of the business. As a leading global provider of risk management, security, humanitarian, training and operational support services, we remain dedicated to providing our customers with sophisticated and specialized programs and look forward to supporting their mission needs with forward-thinking solutions for years to come."

Mr. Reardon continued, "Our lenders were very supportive throughout this process and we look forward to continuing to work with them as the new owners of Constellis. We also thank our customers for their support, our business partners for their cooperation and partnership, and our outstanding employees for their continued dedication."

Akin Gump Strauss Hauer & Feld LLP served as the Company’s legal counsel, PJT Partners, Inc. served as its financial advisor and AlixPartners LLP provided a managing director to serve as chief restructuring officer and served as restructuring and operations advisor.

Gibson, Dunn & Crutcher LLP and Houlihan Lokey, Inc. served as legal counsel and financial advisor, respectively, to an ad hoc group of certain of the Company’s lenders.

About Constellis

Constellis protects critical priorities safely and efficiently around the world. Operating in 30 countries and based in the Washington D.C. area, our 22,000 Constellis personnel bring unparalleled dedication and passion for creating a safer world and upholding the highest standards of compliance, quality and integrity. As a leading global provider of risk management, security, humanitarian, training and operational support services, Constellis’ forward thinking solutions include a range of synergistic services, including background investigations, social intelligence tools, advanced training, logistics and life support, UAS and K9 services, and crisis response and mitigation. Constellis is committed to the success of our customers and other partners.


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