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SOURCE Multiband Corporation
Initial Agreement Provides Up to $30.0 Million of Senior Secured Debt Financing
MINNEAPOLIS, March 21, 2013 /PRNewswire/ -- Multiband Corporation, (NASDAQ:MBND), a leading Home Service Provider (HSP) for DIRECTV and the nation's largest DIRECTV Master System Operator (MSO) for Multiple Dwelling Units (MDU's), today announced that it has completed a financing transaction with Fifth Third Bank that will provide up to $30.0 million of senior secured debt financing. The financing matures on April 30, 2016 and is subject to certain financial covenants. For additional details, please access Multiband's Form 8K filed with the Securities and Exchange Commission on March 21, 2013.
The financing package consists of a $20.0 million term loan and a $10.0 million revolving line of credit. The initial $30.0 million financing package will be used to replace the DirecTECH Holding Company, Inc. 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 that 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."
About Multiband Corporation
Multiband Corporation (Nasdaq: MBND) engages with a vast and growing array of technologies including renewable energy, wireless infrastructure, electrical power systems, digital signage, commercial audio/video solutions, hospitality IPTV and VOD systems. Multiband completes nearly 20% of all DIRECTV's installations, maintenance and upgrades for residents of single-family homes. Multiband also supplies broadband cable and satellite internet solutions for homes and businesses across the nation. As the largest nationwide DIRECTV master system operator in the Multiple Dwelling Unit (MDU) market and one of the largest full-service home service providers (HSPs), Multiband is a driven leader in a competitive industry. Additionally, Multiband is a leading provider of software and integrated billing services to MDUs on a single bill, including video, voice, data and other value-added local services, both directly and through strategic partnerships. Multiband focuses on providing world-class customer service and the highest level of performance for all partners and customers, from multinational corporations to individual families. Multiband is headquartered in Minneapolis, Minn., and has offices strategically placed around the continental United States.
Statements about our future expectations are "forward-looking statements" within the meaning of applicable Federal Securities Laws, and are not guarantees of future performance. When used herein, the words "may," "will," "should," "anticipate," "believe," "appear," "intend," "plan," "expect," "estimate," "approximate," and similar expressions are intended to identify such forward-looking statements. These statements involve risks and uncertainties inherent in our business, including those set forth in our most recent Annual Report on Form 10-K for the year ended December 31, 2011, and other filings with the SEC, and are subject to change at any time. Our actual results could differ materially from these forward-looking statements. We undertake no obligation to update publicly any forward-looking statement.
Contact: James Mandel, CEO for Multiband Corporation at (763)504-3000
Cameron Donahue, Hayden IR, (651) 653-1854 or firstname.lastname@example.org
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