Why Exela Technologies Stock Is Trading Higher Today

Exela Technologies Inc XELA looked to exchange up to 100 million shares for up to $125 million liquidation preference of its 6.00% Series B1 Cumulative Convertible Perpetual Preferred Stock.
Every 20 shares were exchangeable for one share of Series B1 Preferred Stock, having a liquidation preference of $25.00 per share of Series B1 Preferred Stock.
The offer price implies a premium of 257% on Exela's April 15 closing of $0.35.
Exela will retire the shares tendered, reducing the share count by ~20.6%.
Exela also offered to exchange all of the outstanding 6.00% Series B Cumulative Convertible Perpetual Preferred Stock for Series B1 Preferred Stock, with each share of Series B Preferred Stock exchangeable for one share of Series B1 Preferred Stock and an amount in cash equal to the accrued but unpaid dividends on the Series B Preferred Stock.
Exela held $48.1 million in cash and equivalents as of December 31, 2021.
Price Action: XELA shares traded higher by 13.8% at $0.40 in the premarket on the last check Monday.