Atento S.A. announced that it has received $17 million in tranche 2 funding under its interim financing arrangements announced on 23 June 2023, through the issuance of additional new money notes due 2025. The originally contemplated tranche 2 funding of $10 million was upsized by $7 million as a result of substantial additional interest among existing creditors to participate in the transaction. This brings the total committed interim funding to the $37 million originally contemplated.

The tranche 2 funding provides enhanced liquidity and financial runway to the company to support the implementation of the comprehensive restructuring of the business via a restructuring plan (the Restructuring). The Restructuring is expected to deleverage the company?s balance sheet significantly and allow the business to raise substantial new funding to facilitate future growth, in line with the Restructuring Support Agreement (the RSA) announced on 3 July 2023. Upon Completion, the Restructuring is expected to drive the company to a net debt leverage ratio of approximately 1.0x or lower.

Expanded participation in the tranche 2 funding reflects the continuing support of the Restructuring by the company?s financial stakeholders, with increased accession to the RSA by additional parties bringing the number of the supportive holders of the company?s senior secured notes due 2026 (the 2026 Notes) to approximately 52 % of the principal amount of those notes. The company remains in discussions with a number of additional holders of the 2026 Notes, with a view to obtaining further support for the Restructuring in the coming weeks, including the potential participation of such holders in the exit financing contemplated by the RSA upon consummation of the Restructuring. To date the company has received substantial interest in participating in the exit financing from both supportive holders of the 2026 Notes and from other holders of 2026 Notes.