secwatch.observer — SEC 8-K summary
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Issuer:     KLDiscovery Inc. (—)
CIK:        0001752474
Form:       8-K
Filed at:   2024-08-15T23:59:59+00:00
Accession:  0000950170-24-097359
Event type: other_material
Sentiment:  negative
Materiality: 0.95
Item codes: 1.01, 1.02, 2.03, 3.02, 5.03, 5.01, 5.02, 5.07, 7.01, 9.01
LLM model:  deepseek-v4-flash:cloud@v2

KLDiscovery completes debt restructuring; MGG & OTPP take control with new $50M second lien loan at 17%
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- Debenture exchange: 943.8M Class A shares & 145.9M Class B-1 issued to debenture holders; OTPP receives 145.9M Class B-2 for $14.59.
- New $50M second lien loan at 17% PIK from MGG and other debenture holders; extends first lien maturity to Aug 9, 2027.
- Change in control: MGG owns ~61.5% and OTPP ~34.4% of Class A; OTPP holds 100% of Class B-1 (non-voting on director elections).
- Board reduced to 7 directors; all prior directors resigned; new board includes MGG affiliates Kevin Griffin & Dale Stohr and OTPP affiliates Lee Sienna & Anthony Waszkiewicz.
- New stockholders agreement grants MGG and OTPP veto power over major actions (mergers, dividends, debt above $1M, etc.) and forced sale right after 54 months.

Source:
  EDGAR index:    https://www.sec.gov/Archives/edgar/data/1752474/000095017024097359/0000950170-24-097359-index.htm
  Primary doc:    https://www.sec.gov/Archives/edgar/data/1752474/000095017024097359/kldi-20240814.htm
  HTML page:      https://secwatch.observer/filing/0000950170-24-097359

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