System1 Inc. (NYSE: SST) announced a debt restructuring agreement with its lenders that will reduce total debt by approximately $152.6 million and extend maturity dates to 2031.

The company will exchange its existing $252.6 million term loan facility, maturing in July 2027, and $50 million revolving credit facility, maturing in January 2027, for a new $150 million term loan maturing in January 2031. The transaction also includes the issuance of convertible preferred stock with an initial stated value of $39.3 million and a one-time cash payment of approximately $31.4 million to lenders.

All existing term loan and revolver lenders participated in the exchange transaction, which was agreed upon on May 29, 2026. The deal requires shareholder approval for the preferred stock issuance and is expected to close in the third quarter of 2026 following the company's annual shareholder meeting.

System1 operates internet utilities including CouponFollow, MapQuest, and Startpage.com, along with an artificial intelligence-powered marketing platform. The Los Angeles-based company filed a Form 8-K with the Securities and Exchange Commission providing additional transaction details.

"This transaction materially strengthens our balance sheet and provides a long-term capital structure that supports the focus and discipline we are bringing to the business," said Michael Blend, co-founder, chairman and chief executive officer.

Chief Financial Officer Tridivesh Kidambi stated the agreement reduces total indebtedness by over $160 million from the beginning of the year and extends debt maturity to 2031 with full lender participation.