UniTek Global Services said it has received a commitment letter from Apollo Investment for financing arrangements including an asset-based revolving credit facility totaling $75 million. The commitment letter contemplates that the parties will enter into definitive documentation for the ABL facility no later than July 10, 2013.
Once closed, UniTek plans to use the funds available under the ABL facility to replace its existing revolving credit and security agreement, dated April 15, 2011. The ABL facility is expected to increase the company’s borrowing availability as compared to its existing revolving credit facility, providing UniTek with greater financial flexibility as the company continues to explore refinancing alternatives for its outstanding indebtedness. The increase in borrowing availability over current availability will be $30 million through October 31, 2013, $25 million from November 1, 2013 through November 30, 2013 and $20 million thereafter.
“When finalized, this ABL facility will provide us with additional liquidity as we continue working on the refinancing of our outstanding debt,” said Rocky Romanella, chief executive officer of UniTek. “We are progressing on a number of fronts related to the completion of the audit and refinancing of our debt, and this commitment letter is an important step in the overall process.”
Pursuant to the commitment letter, UniTek will pay Apollo a commitment fee equal to 4% of the total amount of the proposed ABL facility, payable in two equal installments due upon receipt of the commitment letter and the initial funding of the ABL facility.
UniTek 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.