Investing.com -- Xerox Holdings Corp. sold tariff refund claims at a discount during the second quarter to generate cash and reduce debt as the company works to manage upcoming debt maturities.

The company recorded $105 million of tariff refund receivables in gross profit during the quarter and sold the receivable to a third party for $80 million in cash, management said Thursday. Chief financial officer Chuck Butler said Xerox used a significant portion of that cash to repurchase debt at a discount.

Xerox reported second-quarter revenue of $1.9 billion, up 22% from the prior year, along with $55 million in adjusted net income. Revenue fell 7% on a pro-forma basis.

The company holds $4.2 billion of total debt, including $556 million of unsecured notes due in August 2028, according to its latest filing. The notes trade at 60 cents on the dollar.

"We are running a race," said Louis J Pastor, chief executive officer, on the earnings call. "The hurdles are our 2028 debt maturities, our 2029 debt maturities, and our 2030 debt maturities."

A secondary market for tariff refund claims has developed after the Supreme Court struck down President Donald Trump's tariffs in February. Companies facing financial pressure have sold these claims rather than pursue lengthy government lawsuits.

Xerox acquired Lexmark last year through a debt-funded transaction. The company also raised $450 million through a joint venture financing with TPG earlier this year.

The company raised its full-year revenue guidance to $7.6 billion, citing stronger than expected growth in print and other segments. Shares rose as much as 43% on Thursday.