MERRIMACK, N.H., July 28, 2015 (GLOBE NEWSWIRE) -- GT Advanced Technologies Inc. (OTC:GTATQ), today announced that it has it has closed on its $95 million debtor-in-possession term loan facility (the "DIP Loan Facility"). The lenders include certain holders of GT's convertible notes. The loan has a one year term and will be secured by all assets of the company on a super-priority basis.
The Company will use the proceeds of the DIP Loan Facility to fund working capital requirements and pay other costs and expenses with respect to the administration of GT's and certain of its subsidiaries' Chapter 11 cases.
"This is an important milestone in our plan to emerge from Chapter 11, and we are pleased that our court-approved DIP financing loan has closed," said Tom Gutierrez, GT's president and CEO. "The DIP loan gives us access to needed capital to continue to operate the company as we pursue near-term revenue opportunities and meet the obligations required as part of our Chapter 11 filing. I also want to take this opportunity to thank our customers for their continued loyalty, and our dedicated employees who have shown tremendous commitment to GT during some very difficult times."
GT is working with some of the leading legal and financial organizations to guide it through the Chapter 11 process. Paul Hastings LLP is serving as bankruptcy counsel and Rothschild Inc. is the financial advisor.
Some of the information in this press release relates to future expectations, plans and prospects for the Company's business and industry that constitute "forward-looking statements" for the purposes of the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. In some cases, forward-looking statements can be identified by terminology such as "may," "will," "could," "should," "expect," "plan," "project," "intend," "anticipate," "believe," "estimate," "predict," "potential," "pursue," "target," "continue," the negative of such terms or other comparable terminology. Forward-looking statements include, but are not limited to the following: the DIP Loan Facility will provide for loans in an initial aggregate principal amount of $95.0 million, and will provide for, or permit, a letter of credit facility providing for the issuance of letters of credit with the aggregate face amounts outstanding not to exceed $15.0 million; and the Company anticipates using the proceeds of the DIP Facility to fund working capital requirements, pay other costs and expenses with respect to the administration of the Company's and certain of its subsidiaries' Chapter 11 cases. These forward-looking statements are not a guarantee of performance and these statements involve certain risks and uncertainties that may be beyond the Company's control and may cause actual future results to differ materially from our current expectations. The Company's ability to benefit from the DIP Loan Facility may be negatively impacted by certain factors, including the Company's Chapter 11 filings and its ability to comply with agreements with other parties (including Apple Inc.), and the Company's ability to raise sufficient capital to allow it to emerge from Chapter 11. Other factors that may cause actual events to differ materially from those expressed or implied by the forward-looking statements and various other risks are outlined in the Company's filings with the Securities and Exchange Commission, including (but not limited to) the statements under the heading "Risk Factors" in the Company's Quarterly Report on Form 10-Q for the quarter ended June 28, 2014 and the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2013. Statements in this press release should be evaluated in light of these important factors. The statements in this press release represent GT Advanced Technologies Inc.'s expectations and beliefs as of the date of this press release. GT Advanced Technologies Inc. anticipates that subsequent events and developments may cause these expectations and beliefs to change. GT Advanced Technologies Inc. is under no obligation to, and expressly disclaims any such obligation to, update or alter its forward-looking statements, whether as a result of new information, future events, or otherwise.
CONTACT: Jeff Nestel-Patt GT Advanced Technologies 603-204-2883 firstname.lastname@example.org
Source:GT Advanced Technologies