Holders who exchange their 2017 Notes in the Exchange Offer receive, for each $1,000 principal amount of 2017 Notes, $650 principal amount of new term loans with a maturity date in 2019 (the "Term Loans"), including $30 principal amount relating to the delivery of consents before the consent payment expiration deadline on May 16, 2016, and $350 initial liquidation preference of a new series of preferred stock. The Company anticipates that it will conduct a final settlement on or before August 19, 2016 at which point the Company will accept for purchase all 2017 Notes that were validly tendered and not validly withdrawn pursuant to the Exchange Offer and were not exchanged at the early settlement or at the second settlement, subject to the participating holders providing certain information to the Company and Cortland Capital Markets Services LLC as administrative agent for the Term Loans on or before the final settlement date. Participating holders may contact the Company to provide the required information at firstname.lastname@example.org or 303-713-2266.
SquareTwo's legal advisor in connection with the recapitalization is Hogan Lovells US LLP and its investment banker is Evercore.
This press release is neither an offer to purchase nor a solicitation to buy any securities, nor is this press release an offer to sell or a solicitation of an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale is unlawful. The Exchange Offer is being made pursuant to an exemption from the registration requirements of the Securities Act of 1933, as amended (the "Securities Act") contained in Section 3(a)(9) of the Securities Act. The Company has not filed, and does not expect to file, a registration statement under the Securities Act or any other federal or state securities laws with respect to the preferred stock.
About SquareTwo Financial
SquareTwo Financial Corporation is a leader in the distressed asset purchasing industry. SquareTwo's primary business is the acquisition, management and collection of charged-off consumer and commercial accounts receivable that are purchased from financial institutions, finance and leasing companies, and other issuers in the United States and Canada. Our business model leverages our analytic expertise, technology platform, and in the United States, a unique combination of SquareTwo-owned call centers operating under the d/b/a name Fresh View Solutions and a network of regional law offices, also referred to as "branch offices," exclusively dedicated to SquareTwo.
This press release contains forward-looking statements within the meaning of the federal securities laws, including the anticipated final settlement of the Exchange Offer for the 2017 Notes and other information and statements that are not historical fact. These forward-looking statements involve certain risks and uncertainties that could cause actual results to differ materially from those expressed or implied by these statements. These risks and uncertainties include factors detailed in the Offering Memorandum and in SquareTwo's most recently filed Annual Report on Form 10-K. These forward-looking statements speak only as of the date of this release. The Company expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein to reflect any change in SquareTwo's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based, except to the extent required by the federal securities laws.
Ralph Nowicki, CAO & VP of Investor Relations
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SOURCE SquareTwo Financial