UniTek Global Services, Inc. Closes Comprehensive Amendment to Term Credit
Agreement and Announces Withdrawal of DIRECTV Notice of Termination
BLUE BELL, Pa., July 26, 2013 (GLOBE NEWSWIRE) -- UniTek Global Services, Inc.
("UniTek" or the "Company") (Nasdaq:UNTK), a premier provider of permanently
outsourced infrastructure services to the telecommunications, broadband cable,
wireless, transportation, public safety and satellite television industries,
today announced that it has closed the previously announced amendment to its
Term Credit Agreement (the "Term Amendment"). The Term Amendment waives all
existing defaults and resets financial and other covenants related to the
Company's previously announced financial restatements. The facility will keep
its original maturity date of April 15, 2018.
In conjunction with the closing of the Term Amendment, the previously issued
180-day notice of the termination of the master services agreement between the
Company's DirectSat subsidiary and DIRECTV, LLC, has been withdrawn.
Rocky Romanella, Chief Executive Officer of UniTek Global Services, said, "We
are grateful for DIRECTV's ongoing support. Their willingness to work with us
through our efforts to refinance the debt is indicative of the strength of our
relationship, and we are pleased to be in a position to continue in our role
as an integrated, value-added fulfillment service provider for them."
Dave Baker, Senior Vice President of DIRECTV, stated, "We are pleased that
UniTek was able to satisfy the requirements for the automatic withdrawal of
the termination notice. Throughout this process, they have maintained the high
levels of service and performance that we have come to expect from them, and
we look forward to continuing our relationship."
"Our work on the financial restatements is progressing toward completion, and
with the recently closed refinancing of the ABL Revolver, this comprehensive
amendment to our Term Loan and the rescission of the DIRECTV termination
notice, our team is more energized and more committed than ever to meeting our
near- and longer-term growth objectives. We have made great progress recently,
and look forward to the completion of additional milestone events in this
process," concluded Mr. Romanella.
Under the Term Amendment, the Term Lenders have waived existing defaults and
revised the financial covenants and covenants related to the delivery by the
Company of its audited financial statements for the year ended December 31,
2012 and unaudited financial statements for the quarters ended March 31 and
June 30, 2013.
The amended term loan will continue to bear monthly interest payable in cash
at a rate equal either to LIBOR (with a 1.50% floor) plus 9.50% or the prime
rate plus 8.50%, plus, in either case, an amount to be added to the principal
balance of the term loan at an annual rate equal to 4.00% of the outstanding
balance. In connection with the Term Amendment, the Company has issued to the
Term Lenders warrants, exercisable at $0.01 per share, for shares of the
Company's common stock equal to 19.99% of the shares outstanding prior to the
date of the Term Amendment. The lenders will also receive a waiver and
amendment fee, which has been added to the principal balance of the term loan,
equal to 2.00% of the outstanding loan balance.
About UniTek Global Services
UniTek Global Services is a provider of engineering, construction management
and installation fulfillment services to companies specializing in the
telecommunications, broadband cable, wireless, two-way radio, transportation,
public safety and satellite industries. UniTek has created a scalable
operating platform, enabling each UniTek subsidiary to deliver quality
services to its Fortune 200 customers. www.unitekglobalservices.com.
The statements in this press release that are not historical fact are
forward-looking statements within the meaning of Section 27A of the Securities
Act of 1933, as amended, and Section 21E of the Securities Exchange Act of
1934, as amended. Forward-looking statements include statements concerning
plans, objectives, goals, strategies, future events or performance, and
underlying assumptions and other statements that are other than statements of
historical facts, including but not limited to statements regarding the
Company's current and future relationships with its customers, including
DIRECTV, the Company's plans to file historical financial results, including
restatements of previously issued financial statements, and the Company's
growth objectives. These statements are subject to uncertainties and risks
including, but not limited to, the Company's ability to address issues arising
from previously disclosed accounting-related matters, operating performance,
general financial, economic, and political conditions affecting the Company's
business and its target industries, the ability of the Company to perform its
obligations under its contracts and agreements with customers and other risks
contained in reports filed by the Company with the Securities and Exchange
Commission, including in our Form 10-K for the year ended December 31, 2011.
The words "may," "could," "should," "would," "believe," "are confident,"
"anticipate," "estimate," "expect," "intend," "plan," "aspire," and similar
expressions are intended to identify forward-looking statements. All such
statements are made in good faith by the Company pursuant to the "safe harbor"
provisions of the Private Securities Litigation Reform Act of 1995. The
Company does not undertake to update any forward looking statement, whether
written or oral, which may be made from time to time by or on behalf of the
Company, except as may be required by applicable law or regulations.
CONTACT: The Piacente Group | Investor Relations
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