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BLUE BELL, Pa., July 2, 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 received a commitment letter from Apollo Investment Corporation ("Apollo") for financing arrangements including an asset-based revolving credit facility ("ABL Facility") totaling $75 million (the "Commitment Amount"). The commitment letter contemplates that the parties will enter into definitive documentation for the ABL Facility no later than July 10, 2013.
Once closed, UniTek plans to use the funds available under the ABL Facility to replace its existing Revolving Credit and Security Agreement, dated April 15, 2011. The ABL Facility is expected to increase the Company's borrowing availability as compared to its existing revolving credit facility, providing UniTek with greater financial flexibility as the Company continues to explore refinancing alternatives for its outstanding indebtedness. The increase in borrowing availability over current availability will be $30 million through October 31, 2013, $25 million from November 1, 2013 through November 30, 2013 and $20 million thereafter.
"When finalized, this ABL Facility will provide us with additional liquidity as we continue working on the refinancing of our outstanding debt," said Rocky Romanella, Chief Executive Officer of UniTek. "We are progressing on a number of fronts related to the completion of the audit and refinancing of our debt, and this commitment letter is an important step in the overall process."
Pursuant to the commitment letter, UniTek will pay Apollo a commitment fee equal to 4% of the total amount of the proposed ABL Facility, payable in two equal installments due upon receipt of the commitment letter and the initial funding of the ABL Facility.
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.
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 plans to negotiate and enter into definitive documents for the ABL facility, to replace the existing Revolving Credit and Security Agreement, to achieve an expanded Company's borrowing base, to obtain greater financial flexibility as the Company continues to explore refinancing alternatives for its outstanding indebtedness, to explore refinancing alternatives; and to file historical financial results, including restatements of previously issued financial statements. These statements are subject to uncertainties and risks including, but not limited to, 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