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FTE Networks (NYSEA:FTNW) announced that it has signed an indicative term sheet with its senior lender under which it is expected to replace and extend the duration of its existing credit facility. As quoted in the press release: Under the proposed terms, the interest rate will be reduced to Libor+9.5% and the maturity date will …
FTE Networks (NYSEA:FTNW) announced that it has signed an indicative term sheet with its senior lender under which it is expected to replace and extend the duration of its existing credit facility.
As quoted in the press release:
Under the proposed terms, the interest rate will be reduced to Libor+9.5% and the maturity date will be extended to March 30, 2021. Consideration in connection with the consummation of this Amendment will include 250,000 common stock warrants with a cash strike price of $10.00 and customary closing fees. The terms of the amended credit facility will be subject to and contingent upon a signed definitive agreement, the satisfaction of certain conditions precedent, including the restructuring of subordinated debt, and all other customary terms and conditions for a transaction of this size and nature. Subject to the foregoing, the Company anticipates that the facility amendment will be completed by the end of January 2019.
“We truly appreciate the relationship we have with Lateral and are excited to soon complete yet another milestone transaction with Lateral,” said Mr. Michael Palleschi, President and CEO of FTE Networks. Mr. Palleschi continued, “Lateral continues to grow with us providing out of the box solutions that are representative of a valued partner.” This amendment will reduce the cost of capital and extend the amortization schedule. Collectively, we believe this transaction will greatly strengthen the balance sheet and overall liquidity of the Company.”
“We are pleased to continue our support of FTE. Creating valuable partnerships with industry leaders such as FTE is a fundamental component of Lateral’s investment strategy.” said Richard de Silva, Managing Partner of Lateral. “This proposed financing signals our strong belief in the growth trajectory of the Company. We believe in management’s vision and ability to continue to build an industry-leading, next-generation infrastructure technology company.”
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