Exela Technologies Inc. (NASDAQ:XELA) Stock Under Pressure: Fell 16% Last Week

Exela Technologies Inc. (NASDAQ:XELA) fell 18% last week, announcing the termination of the offer by some subsidiaries to acquire and exchange outstanding term loans.

Market Stats

On Friday, XELA stock moved down 2.84% at $1.37 with more than 14.41 million shares, compared to its average volume of 21.28 million shares. The stock has moved within a range of $1.3400 – 1.4400 after opening trading at $1.41.

Announces Termination of Offer to Purchase and Exchange Term Loans

Notably, this pending offer by some of its subsidiaries to buy and exchange their current 2023 secured notes is in effect and full force. The New Notes will have a subsidiary guarantor and will not be released from the guarantee because it stops being a subsidiary. Also, issuers and subsidiaries might not transfer IP rights to an unrestricted entity and liens subordination securing the New Notes, and associated subsidiaries guarantees need the consent of the affected New Notes holder.

As of Thursday, November 18, 2021, around 34.15 or $318.9 million of the outstanding Old Notes had been tendered for exchange as per the Exchange offer.Old Notes not validly withdrawn or validly tenders at or before the render time of 11:59 p.m. on November 24, 2021, will be eligible to receive $900 as per the $1000 Old Notes’s principal amount. XELA is worth keeping an eye on.

Traders Corner

XELA stock is trading below the 20-Day and 50-Day Moving averages of $1.66 and $1.81 respectively. Moreover, the stock is trading below the 200-Day moving average of $2.17. The stock is down 18% in the past month.