UniTek Global Services announced it has closed the previously announced amendment to its term credit agreement. The amendment waives all existing defaults and resets financial and other covenants related to the company’s previously announced financial restatements. The facility will keep its original maturity date of April 15, 2018.
According to an 8-K filing, Cerberus Business Finance served as administrative agent for a lender group consisting of several banks and other financial institutions.
The amended term loan will continue to bear monthly interest payable in cash at a rate equal either to LIBOR (with a 1.50% 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 4.00% of the outstanding balance.
In connection with the amendment, the company has issued to the term lenders warrants, exercisable at $0.01 per share, for shares of the company’s common stock equal to 19.99% of the shares outstanding prior to the date of the amendment. The lenders will also receive a waiver and amendment fee, which has been added to the principal balance of the term loan, equal to 2.00% of the outstanding loan balance.
In conjunction with the closing of the term amendment, the previously issued 180-day notice of the termination of the master services agreement between the company’s DirectSat subsidiary and DIRECTV has been withdrawn.
Rocky Romanella, CEO of UniTek Global Services, said, “We are grateful for DIRECTV’s ongoing support. Their willingness to work with us through our efforts to refinance the debt is indicative of the strength of our relationship, and we are pleased to be in a position to continue in our role as an integrated, value-added fulfillment service provider for them.”
Blue Bell, PA-based 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.