- Agreement ensures orderly continuation of operations and
service for customers and consumers
- Agreement includes extension of debt maturities, reduction
in cash interest expense, and injection of new capital
- Agreement clears path for consideration of strategic
alternatives
DALLAS, March 28, 2024 /PRNewswire/ -- Aventiv
Technologies, a communications and technology business serving the
incarcerated, their friends and family, and state and local
correctional facilities, today announced an agreement with all
necessary financial stakeholders to strengthen its financial
foundation by extending debt maturities, reducing cash interest
expense, and injecting new capital into the business.
Parties to the agreement are Aventiv (the "Company"); financial
sponsor Platinum Equity ("Platinum"); and 100% of its lender group.
Key terms include an extension of maturities of the Company's first
lien senior secured notes and credit facilities; a reduction of
cash interest expense; and an addition of new capital.
"We appreciate that our financial stakeholders have come
together to ensure that we have the necessary capital and financial
structure to support our business, our customers and consumers, and
our employees for the long run," said Aventiv Chief Executive
Officer Dave Abel.
"Our business focus is to expand the products, services,
security, access, and affordability we provide to our facility
customers, incarcerated consumers, and their friends and families,"
Abel said. "This financing agreement and the strategic flexibility
it provides will ensure we deliver on that promise now and in the
future."
With the agreement in place, normal-course operations and
service to customers and consumers continue uninterrupted. The
Company and Platinum will resume their evaluation of strategic
alternatives for Aventiv, which has been significantly transformed
under Platinum's ownership.
Alternatives include the possible sale of the business to a
buyer capable of supporting the Company's continued evolution from
a narrow telecommunications provider to a technology platform
company delivering secure, accessible technology that helps
eliminate digital deserts in correctional facilities, improving
outcomes for the country's corrections community.
Key elements of the transformation during Platinum's ownership
include:
(i) appointment of a new management team focused
on collaborative, solutions-oriented engagement with customers,
consumers, and regulators;
(ii) improved affordability and accessibility of
communication services for customers, consumers, and their friends
and family, via vastly expanded connections delivered through phone
apps on tablets, secure e-messaging and text, and video
connect capabilities;
(iii) development of an expansive new suite of
technology products and services supporting access to media,
education, job training, and other programs designed to support
rehabilitative justice and help reduce recidivism;
(iv) creation of the Justice Sandbox, a digital
marketplace where justice-impacted tech entrepreneurs can develop
and launch content that directly supports currently incarcerated
individuals preparing for reentry;
(v) investment of more than $600 million over the past five years to build
the quality infrastructure and innovative solutions, while
deploying more than 600K tablets,
that help keep families and communities safe and connected when a
loved one is incarcerated – providing resources otherwise
unavailable if facility customers relied solely on public
funds.
Aventiv is well-positioned to grow market share by continuing to
innovate solutions that create safer environments for
both corrections staff and incarcerated individuals; providing
greater connectivity between the incarcerated and their friends and
loved ones; establishing broader access to education, employment,
religious and mental health content, and entertainment; and working
to ease reintegration and reduce recidivism for incarcerated
individuals.
Advisers engaged in the financing agreement included the
following:
For Aventiv, Milbank acted as legal advisor, FTI Consulting
acted as financial advisor, and PJT Partners LP acted as investment
banking advisor.
For Platinum Equity, Willkie Farr
& Gallagher acted as legal advisor.
For the Lenders, Gibson, Dunn & Crutcher acted as legal
advisor, and Evercore acted as financial advisor.
About Aventiv Technologies
Aventiv Technologies is an
industry-leading modern technology company that creates more secure
environments within correctional facilities, supporting corrections
officials and connecting incarcerated individuals to technology
that supports their reentry.
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SOURCE Aventiv Technologies