BLUE BELL, Pa., April 15, 2011 (GLOBE NEWSWIRE) -- UniTek Global Services, Inc. ("UniTek" or the "Company") (Nasdaq:UNTK), a premier provider of permanently outsourced infrastructure services to the wireless and wireline telecommunications, broadband cable and satellite television industries, today announced that it has completed its previously announced debt refinancing through the closing of a $100 million term loan and $75 million revolving credit facility. The term loan and revolving credit facility include accordion features of $50 million and $25 million, respectively, to provide the Company with additional financial flexibility to support potential strategic acquisitions and organic growth.
UniTek expects interest savings of approximately 20% per year, as compared to the indebtedness these new loans are replacing, excluding the potential benefit from letter of credit fee savings. Overall, the Company expects total interest expense savings in excess of $3 million annually as compared to the refinanced debt.
"We are very pleased to complete the restructuring of our debt facility, which was one of our main objectives for early 2011. The new facility provides for greater liquidity, significantly reduced interest expense and longer maturity on our debt," said C. Scott Hisey, UniTek's Chief Executive Officer. "In addition, this facility has an attractive accordion feature that provides for greater flexibility as we continue to execute our organic growth and acquisition strategy. We now improved our capital structure to a degree that will allow us to execute our strategic objectives and continue to drive shareholder value."
The $75 million Asset Backed Line of Credit Revolver bears interest at LIBOR (with no floor) plus a margin of 2.25% - 2.75%. This facility will mature in 2016.
The $100 million term loan bears interest at LIBOR (with a floor of 1.50%) plus a margin of 7.50%. This loan will mature in 2018.
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 and satellite industries. UniTek has created a scalable operating platform, enabling each UniTek subsidiary to deliver quality services to its Fortune 200 customers. UniTek, based in Blue Bell, PA, utilizes a diverse workforce of over 5,200 deployed in over 102 locations in the United States and Canada. www.unitekgs.com
Forward Looking Statements
The Company may from time to time make written or oral "Forward-looking statements", including statements contained in this release and in the Company's filings with the Securities and Exchange Commission. These forward-looking statements include statements with respect to the Company's beliefs, plans, objectives, goals, expectations, anticipations, estimates, and intentions that are subject to significant risks and uncertainties and are subject to change based on various factors, many of which are beyond the Company's control. These risks and uncertainties include the risk that the registration statement never becomes effective and we are not able to conduct any offering of securities in connections with the registration statement, as well as other risk factors detailed from time to time in the Company's filings with the Securities and Exchange Commission. The words "may", "could", "should", "would", "believe", "anticipate", "estimate", "expect", "intend", "plan", 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.
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