- Prepackaged Chapter 11 Filing of the U.S. Legal Entities
Recapitalizes Company, Eliminates nearly 40% in Debt
- $81.5 million in New Money
Financing Provided by New Equity Owners of the Business
- Agreement Creates Financial Strength to Prioritize Growth
and Further Execute on Phase 2 of 36-month Transformation
Plan
- Business Continues Without Interruption in the U.S. and
Globally
- Company Expects Transaction to Finalize within 45
Days
SHELTON,
Conn., May 22, 2024 /PRNewswire/ -- Dynata, LLC
("Dynata" or the "Company"), the most trusted source for reliable,
accurate first-party data —announced today that it has commenced a
prepackaged Chapter 11 filing in the
United States Bankruptcy Court for the District of
Delaware. The transaction will
result in a voluntary write down of almost 40% of its total debt
from approximately $1.3 billion to
$780 million in exchange for the
first and second lien holders to own 100% of the equity in the
Company. The process is limited to Dynata's U.S. entities and all
foreign businesses remain unaffected.
The restructuring is supported by the required percentage of
Dynata's lenders, including its revolver, first lien term loan, and
second lien term loan lenders and its sponsor, who committed to
support the prepackaged plan that will enable the Company to
further invest in its 36-month transformation initiatives and
support its long-term growth strategy.
The result is a significantly stronger balance sheet that will
solidify Dynata's position as the top business partner for all
clients and vendors in the first-party data space. Dynata is
seeking to have the prepackaged plan confirmed by early July. The
support of the vast majority of the Company's debtholders greatly
reduces the uncertainty associated with alternative debt
restructuring processes.
Dynata has filed customary first day motions with the Court to
ensure operations continue without any interruption, including
making timely payments to all employees and vendors. Dynata has
ensured that it will maintain ample liquidity throughout this
process and beyond by securing an additional $31.5 million in post-petition financing and
commitments of $50.0 million in exit
financing that enable Dynata to emerge swiftly from bankruptcy.
"I appreciate the continued cooperation with our lenders as
it reaffirms their belief in the underlying strength of our
business." said Mike Petrullo, Chief
Executive Officer of Dynata. "This milestone unlocks value in our
company and supports our short and long-term growth strategy, which
also includes recent additions of key members to our sales and
leadership teams, such as the appointment of Dynata's first Chief
Commercial Officer. By executing our optimization and investment
plans this year we are building the catalyst for growth in 2025 and
beyond. I am thankful to the Dynata team who has committed
themselves to building a best-in-class brand and to our loyal
clients."
Willkie Farr & Gallagher LLP
is serving as Dynata's legal advisor in connection with the
restructuring. Alvarez & Marsal
North America, LLC serves as its restructuring advisor and
Houlihan Lokey, Inc. serves as its
investment banker.
Gibson, Dunn & Crutcher LLP is serving as lead counsel and
PJT Partners LP is serving as investment banker to an ad hoc group
of controlling First Lien Lenders in connection with the
restructuring.
About Dynata
Dynata is the world's largest first-party data company for
insights, activation and measurement. With a reach that encompasses
nearly 70 million consumers and business professionals globally,
and an extensive library of individual profile attributes collected
through surveys, Dynata is the cornerstone for precise, trustworthy
quality data. The company has built innovative data services and
solutions around its robust first-party data offering to bring the
voice of the customer to the entire marketing continuum — from
uncovering insights to activating campaigns and measuring
cross-channel marketing return on investment. Dynata serves more
than 6,000 market research, media and advertising agencies,
publishers, consulting and investment firms and corporate customers
in North America, South America, Europe and Asia-Pacific. Learn more at
www.dynata.com.
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SOURCE Dynata