• Prepackaged Chapter 11 Filing of the U.S. Legal Entities Recapitalizes Company, Eliminates nearly 40% in Debt

• $81.5 million in New Money Financing Provided by New Equity Owners of the Business

• Agreement Creates Financial Strength to Prioritize Growth and Further Execute on Phase 2 of 36-month Transformation Plan

• Business Continues Without Interruption in the U.S. and Globally

• Company Expects Transaction to Finalize within 45 Days

SHELTON, Conn., May 22, 2024 /PRNewswire/ -- Dynata, LLC ("Dynata" or the "Company"), the most trusted source for reliable, accurate first-party data —announced today that it has commenced a prepackaged Chapter 11 filing in the United States Bankruptcy Court for the District of Delaware. The transaction will result in a voluntary write down of almost 40% of its total debt from approximately $1.3 billion to $780 million in exchange for the first and second lien holders to own 100% of the equity in the Company. The process is limited to Dynata's U.S. entities and all foreign businesses remain unaffected.

The restructuring is supported by the required percentage of Dynata's lenders, including its revolver, first lien term loan, and second lien term loan lenders and its sponsor, who committed to support the prepackaged plan that will enable the Company to further invest in its 36-month transformation initiatives and support its long-term growth strategy.

The result is a significantly stronger balance sheet that will solidify Dynata's position as the top business partner for all clients and vendors in the first-party data space. Dynata is seeking to have the prepackaged plan confirmed by early July. The support of the vast majority of the Company's debtholders greatly reduces the uncertainty associated with alternative debt restructuring processes.

Dynata has filed customary first day motions with the Court to ensure operations continue without any interruption, including making timely payments to all employees and vendors. Dynata has ensured that it will maintain ample liquidity throughout this process and beyond by securing an additional $31.5 million in post-petition financing and commitments of $50.0 million in exit financing that enable Dynata to emerge swiftly from bankruptcy.

"I appreciate the continued cooperation with our lenders as it reaffirms their belief in the underlying strength of our business." said Mike Petrullo, Chief Executive Officer of Dynata. "This milestone unlocks value in our company and supports our short and long-term growth strategy, which also includes recent additions of key members to our sales and leadership teams, such as the appointment of Dynata's first Chief Commercial Officer. By executing our optimization and investment plans this year we are building the catalyst for growth in 2025 and beyond. I am thankful to the Dynata team who has committed themselves to building a best-in-class brand and to our loyal clients."

Willkie Farr & Gallagher LLP is serving as Dynata's legal advisor in connection with the restructuring.  Alvarez & Marsal North America, LLC serves as its restructuring advisor and Houlihan Lokey, Inc. serves as its investment banker.

Gibson, Dunn & Crutcher LLP is serving as lead counsel and PJT Partners LP is serving as investment banker to an ad hoc group of controlling First Lien Lenders in connection with the restructuring. 

About Dynata
Dynata is the world's largest first-party data company for insights, activation and measurement. With a reach that encompasses nearly 70 million consumers and business professionals globally, and an extensive library of individual profile attributes collected through surveys, Dynata is the cornerstone for precise, trustworthy quality data. The company has built innovative data services and solutions around its robust first-party data offering to bring the voice of the customer to the entire marketing continuum — from uncovering insights to activating campaigns and measuring cross-channel marketing return on investment. Dynata serves more than 6,000 market research, media and advertising agencies, publishers, consulting and investment firms and corporate customers in North America, South America, Europe and Asia-Pacific. Learn more at www.dynata.com. 

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SOURCE Dynata