EDEN PRAIRIE, MINN. -- KLDiscovery Inc. (“KLDiscovery” or the “Company”), a global leader in data management, information governance, eDiscovery, and advisory services solutions, today announced that it has reached an agreement in principle with its principal convertible debenture holders and its principal term loan lender to significantly reduce the Company’s long-term debt and strengthen its financial position, enabling KLDiscovery to focus on its growth model and drive investment in its market-leading client solutions.

“Today’s announcement marks an important step forward for our company as we move into the future with a capital structure that supports our industry-leading team and long-term growth and profitability objectives,” said Chris Weiler, Chief Executive Officer of KLDiscovery. “KLDiscovery is a strong business with a leading market position, premier brands, and a clear vision for the future. This agreement underscores our key capital partners’ belief in that vision and will provide our company with the financial flexibility necessary to continue delivering the innovation, advanced thinking, and best-in-class offerings that our clients have come to expect from us. The global KLDiscovery team is energized now more than ever and is moving forward with a singular focus on helping our clients address their most challenging data, legal, and regulatory needs.”

Subject to the execution of definitive documents, the transaction provides for a conversion of the Company’s outstanding convertible notes into approximately 96% of KLDiscovery’s pro forma outstanding common equity. Additionally, the maturity on the Company’s term loan will be extended to August 2027.

This agreement in principle reflects the strong support of KLDiscovery’s debenture holders and term loan lender and positions the Company to continue its focus on investing in growth and technology-enabled services and software. The estimated equity split described above may be adjusted as a result of ongoing discussions and definitive documentation of the transaction.

This news comes on the heels of KLDiscovery’s record breaking financial performance in 2023, reflecting strong full-year revenue, EBITDA, and adjusted EBITDA. The Company is building on this momentum by continuing to expand at scale to address the largest and most complex matters on behalf of its growing global customer base. KLDiscovery continues to make significant investments in its best-in-class technology, headlined by Nebula, the Company’s flagship, end-to-end AI / ML powered solution that serves as a singular platform of engagement for legal and other types of data.