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Aventiv Technologies Finalizes Comprehensive Financing Agreement with Lenders and Financial Sponsor Platinum Equity

PR Newswire

DALLAS, March 28, 2024

* 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.

(https://mma.prnewswire.com/media/2210348/Aventiv_Technologies_Logo_Logo.html)

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

aventiv@fticonsulting.com

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