Exela Technologies Inc XELA shares are trading higher by 21.23% to $1.77 during Wednesday’s after-hours session after the company announced an update on its capital deployment strategy.
Exela Technologies says the company has purchased $70 million of face value 2026 Senior Secured Notes at a discount with funds raised from equity. This will be the first contribution to the company’s STS (“Serve the Shareholders”) initiative.
Exela Technologies says interest paid on the Notes contributed to STS, together with additional anticipated contributions of the proceeds from the planned asset sales announced as part of the Strategy and other surplus cash will be set aside and used to create and return value to shareholders.
“Today’s announcement is an important part of our recently initiated Capital Deployment Strategy to Serve the Shareholders. We continue to believe that every part of our capital structure is inappropriately valued. STS will allow us to continue to hunt for rewarding opportunities,” noted Par Chadha, Executive Chairman of Exela said “We look forward to sharing more business updates on our upcoming earnings call.”
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According to data from Benzinga Pro, Exela Technologies has a 52-week high of $70.80 and a 52-week low of $1.25.