SquareTwo Financial Announces Final Settlement of Exchange Offer

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Aug 24, 2016, 10:00 ET

DENVER, Aug. 24, 2016 /PRNewswire/ -- SquareTwo Financial Corporation ("SquareTwo" or the "Company"), a leader in the distressed asset purchasing market in the United States and Canada, today announced the final settlement of its previously announced exchange offer (the "Exchange Offer").

The final settlement of the Exchange Offer closed on August 24, 2016 following the Company's acceptance for purchase of $7,756,000 aggregate principal amount of the Company's 11.625% Senior Second Lien Notes due 2017 (the "2017 Notes").

Holders who exchanged their 2017 Notes in the Exchange Offer received, 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 for holders who delivered consents before the consent payment expiration deadline on May 16, 2016, and $350 initial liquidation preference of a new series of preferred stock. Holders of 2017 Notes who did not provide Term Loan signature pages to the Company or Cortland Capital Markets Services LLC on or before August 19, 2016 were excluded from the final settlement and will continue to hold their 2017 Notes.

Following the final settlement, $23,839,000 aggregate principal amount of 2017 Notes remains outstanding. SquareTwo continues to seek to reduce the outstanding principal amount of the 2017 Notes, and may engage in privately negotiated transactions and other means to acquire 2017 Notes from time to time. Any future transactions may be on the same terms or on terms that are more or less favorable to holders of the 2017 Notes than the terms of the Exchange Offer, as SquareTwo or its affiliates may determine.

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 was 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.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the federal securities laws, including future acquisitions of 2017 Notes by SquareTwo 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 for the Exchange Offer 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.

SquareTwo Contact:

Investor Relations
(303) 713-2266
[email protected]
http://www.squaretwofinancial.com

SOURCE SquareTwo Financial Corporation