BLUE BELL, Pa., July 18, 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 entered into a further amendment (the "Forbearance Amendment") to its previously-disclosed Forbearance Agreement with the Company's lenders under its Term Credit Agreement (the "Term Lenders"), and that it has also agreed with the Term Lenders to negotiate definitive loan documentation and enter into amendments to the Term Credit Agreement to waive existing defaults and revise loan covenants.
The standstill period contained in the original April 30, 2013 Forbearance Agreement has been further extended, through July 26, 2013. The Company and the Term Lenders have agreed to prepare and execute, prior to that date, an amendment to the Term Credit Agreement (the "Term Amendment") upon terms and conditions set forth in a term sheet attached to the Forbearance Amendment. The Term Amendment will contain a waiver by the Term Lenders of all existing defaults and will also include revised financial covenants. The amended term loans will continue to mature in 2018 and will bear monthly interest payable in cash at a rate equal either to LIBOR (with a 1.5% 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 4.0% of the outstanding balance. The lenders will receive warrants, exercisable at $0.01 per share, for shares of the Company's common stock equal to 19.9% of the shares outstanding prior to the date of the Term Amendment. The lenders will receive a waiver and amendment fee, to be added to the principal balance of the term loan, equal to 2.0% of the outstanding loan balance, of which 0.50% has accrued upon the signing of the Forbearance Amendment.