Atento S.A. (ATTO) Draws Down $17M in Trance 2 Funding

Atento S.A. (NYSE: ATTO), one of the world's largest providers of customer relationship and business process outsourcing (CRM/BPO) services and an industry leader in Latin America, today 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 Atento to support the implementation of the comprehensive restructuring of the business via a restructuring plan (the "Restructuring"). The Restructuring is expected to deleverage Atento'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 Atento 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 Atento's financial stakeholders, with increased accession to the RSA by additional parties bringing the number of the supportive holders of Atento's senior secured notes due 2026 (the "2026 Notes") to approximately 52 % of the principal amount of those notes. Atento 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 Atento 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.

Atento, with the unanimous support of the supportive holders of Atento's 2026 Notes, has also extended the term of Mark Nelson-Smith, who was appointed as a Non-Executive Director of the Company on May 23, 2023, through the consummation of the Restructuring to facilitate implementation of the Restructuring.

Atento continues to focus on executing its transformation plan, including geographical expansion and the development of new Artificial Intelligence capabilities, as it remains on track to fulfilling the key milestones under the RSA towards the implementation of the Restructuring.

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