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.
The term loan is prepayable by the Company at any time without penalty. The Term Amendment is subject to customary closing conditions.
"We appreciate that our Term Lenders are willing to work with us and continue to support our Company," said Rocky Romanella, Chief Executive Officer of UniTek Global Services. "This agreement represents another important step in our efforts to return the focus of the entire organization to executing our growth strategy. We have made significant progress on our financing issues and will continue to work toward the completion of our audit and the remaining key initiatives."
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 plans to finalize the Term Amendment 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 Lee Roth (212) 481-2050 firstname.lastname@example.orgSource:UniTek Global Services