Fifth Third Provides $30MM Debt Financing to Multibank
Multiband Corporation, a service provider for DIRECTV, announced that it has completed a financing transaction with Fifth Third Bank that will provide up to $30 million of senior secured debt financing. The financing matures on April 30, 2016 and is subject to certain financial covenants.
The financing package consists of a $20 million term loan and a $10 million revolving line of credit. The initial $30 million financing package will be used to replace a DirecTECH Holding Company note and other debt currently in place as well as for general corporate purposes. This will reduce the company’s interest rate by approximately 50% from the interest rate than has been paid on existing debt.
James L. Mandel, CEO of Multiband, commented, “This is a major milestone for the Company and shows the confidence Fifth Third Bank, a major financial institution, has on the future prospects of Multiband. Our management and the Board of Directors were focused on finding the right partner and this patience has paid off with a top tier lending partner and terms that reflect our current and future financial position. The new financing allows us to pay off debt, currently maturing in 2014, at a significantly lower interest rate and provides the Company with growth capital for future opportunities and executing our growth plan, which in turn, paves the way for future returns to shareholders.”
Minneapolis, MN-based Multiband Corporation engages with an array of technologies including renewable energy, wireless infrastructure, electrical power systems, digital signage, commercial audio/video solutions, hospitality IPTV and VOD systems.