C1 Announces Agreement with Lenders and Other Stakeholders to Significantly Reduce Debt and Boost Liquidity, Enabling Company to Invest for Growth

Expects to Complete Prepackaged Court-Supervised Financial Restructuring on an Expedited Basis

Seeking for Vendors to be Paid in Full

BLOOMINGTON, Minn., April 4, 2024 /PRNewswire/ -- C1, an advanced technology and solutions company, today announced it has entered into an agreement with a supermajority of its lenders and certain other stakeholders to support ongoing efforts to invest in the transformation and growth of the business. The agreement provides for the reduction of approximately 80% of debt from the balance sheet and $245 million in new equity commitments, resulting in a significant increase in the Company's available liquidity.

Jeffrey S. Russell, Chief Executive Officer of C1, said, "We are pleased to have reached this agreement to allow us to continue enhancing the resiliency of our business as a solutions-led company that delivers excellence for our customers and partners alike. Over the past year, we have been taking actions across the organization to help position C1 for success in the market and harness the full value of One C1. To support our ongoing efforts and ensure the Company has a strong financial foundation for the future, C1 is proactively taking steps to reduce our debt levels, strengthen our overall liquidity profile and, in turn, invest in near-term growth and grow market share.

Russell continued, "Our stakeholders' confidence in C1 is a testament to our talented and results driven team and the power of our partnerships, which allow us to drive modernization and innovative outcomes for our customers across our security, networking and infrastructure, and connected customer experience solutions. For instance, in guiding patients to premier healthcare, empowering students with digital learning opportunities, and personalizing the guest experience for hospitality professionals."

In order to implement the agreement on an expedited basis, C1 has filed a prepackaged Chapter 11 proceeding in the United States Bankruptcy Court for the Southern District of Texas. The Company intends to continue to operate its business in the ordinary course and serve its customers with the same excellence that they know and expect. C1 has robust liquidity, including commitments from a majority of C1's current stakeholders, including the existing sponsor CVC Capital Partners, as well as Silver Point Capital, and Monarch Alternative Capital, among others, for new equity and debt financing. The new financing will, subject to Court approval, be available to support the Company throughout the process and in the future. C1 is seeking to pay vendors in full as part of the Chapter 11 proceeding.

Additional Information

C1 has filed a number of customary "first day" motions to continue uninterrupted operations during the financial restructuring.

Additional information regarding C1's financial restructuring is available at C1neXt.com. Court filings and information regarding the claims process are available at https://dm.epiq11.com/c1, by calling the Company's claims and noticing agent, Epiq, at 877-295-6914 (toll-free in the U.S.) or +1-971-290-2761 (for international calls), or by sending an email to [email protected].

Advisors

White & Case LLP is serving as legal advisor, Evercore Group, L.L.C. is serving as investment banker, and AlixPartners LLP is serving as financial advisor to C1.

About C1

C1, the global technology solution provider elevating connected human experiences, is transforming the industry by creating connected experiences that make a lasting impact on customers, our teams, and our communities. More than 6,000 customers use C1 every day to help them build meaningful connections through innovative and secure experiences. C1 collaborates with many of the Fortune 1000 companies and public sector organizations along with other key global industry partners to deliver solutions with a total lifecycle approach. C1 employs more than 1,000 engineers who collectively hold thousands of industry certifications throughout North America and India, including three Customer Success Centers. Learn more at onec1.com.

Forward-Looking Statements

This press release includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, included in this filing that address activities, events or developments that the Company expects, believes, targets or anticipates will or may occur in the future are forward-looking statements. Forward-looking statements include statements preceded by, followed by or that include the words "may," "could," "would," "should," "believe," "expect," "anticipate," "plan," "estimate," "target," "project," "intend," "forecast," "foresee," "likely," "probably," "possibly" or the negative thereof or other variations thereof or other comparable terminology. Examples of such forward looking statements include, but are not limited to, statements regarding the Company's financial results, expected motions to be filed in the Chapter 11 proceeding and the dispositions of such motions, continued operations and customer and supplier programs while in a Chapter 11 proceeding, cash needed to support our operations while in a Chapter 11 proceeding, ability to lower debt and  interest payments, ability to operate while in a Chapter 11 proceeding, ability to pay our creditors, credit rating, among others. While we believe these expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond our control, including, but not limited to: the actions and decisions of our creditors and other third parties with interests in the Chapter 11 cases; our ability to maintain liquidity to fund our operations during the Chapter 11 cases; our ability to obtain Bankruptcy Court approvals in connection with the Chapter 11 cases; our ability to consummate any transactions once approved by the Bankruptcy Court and the time to consummation of such transactions;  adjustments in the calculation of financial results for the quarter or year end, or the application of accounting principles; discovery of new information that alters expectations about financial results or impacts valuation methodologies underlying financial results; and other factors affecting the Company detailed from time to time. These and other important factors may cause our actual results or developments to differ materially from the expectations expressed or implied in the forward-looking statements.  Readers of this press release are cautioned not to place undue reliance on such forward-looking statements, including C1's forecasts, and no assurance can be given that any of such statements will prove to be correct.

Contacts

C1
Kim Espinosa
Media Relations Manager
[email protected]

Joele Frank
Michael Freitag / Viveca Tress / Carleigh Roesler
212-355-4449

SOURCE C1