UniTek Gets Apollo's Commitment Note
UniTek Global Services, Inc. (UNTK) has received a commitment letter from Apollo Investment Corporation (AINV) for financing arrangements worth $75 million. The parties in the financing arrangement comprising an asset-based revolving credit facility (ABL Facility) will enter into a definitive documentation before July 10, 2013.
UniTek intends to utilize the funds from ABL Facility to replace the existing revolving credit and security agreement. Refinancing of outstanding debt will offer financial flexibility for the company. The ABL Facility will also provide additional liquidity through increasing borrowing availability on completion.
The increase in borrowing availability over current availability will be $30 million through Oct 31, 2013. The borrowing availability will be over $25 million from Nov 1, 2013, through Nov 30, 2013, and $20 million thereafter.
UniTek will pay Apollo a commitment fee equivalent to 4% of the total amount of the ABL Facility. The commitment fee will be payable in two equal installments due upon receipt of the commitment letter and initial funding of the ABL Facility.
UniTek, on Apr 12, 2013, revealed its estimated preliminary financial results for 2012. The company also disclosed that it will restate the financial results for the interim periods ended Mar 31, 2012, Jun 30, 2012, and Sep 29, 2012, the fiscal year ended Dec 31, 2011, and the interim period ended Oct 1, 2011.
Blue Bell, PA-based UniTek, a provider of engineering, construction management, installation and technical services to the wireless and wireline telecommunications, satellite television, and broadband cable industries in the U.S. and Canada, is now underlining completion of its financial reporting obligations.
UniTek currently retains a short-term Zacks Rank #3 (Hold).
Other companies in the building-heavy construction industry with favorable Zacks Rank are Dycom Industries Inc. (DY) and EMCOR Group Inc. (EME), each carrying a Zack Rank #1 (Strong Buy).
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