Here is the news article Chris.
Xecom Corp. Announces $30 Million Refinance
PR Newswire, Monday, August 25, 1997 at 16:06
RANCHO MIRAGE, Calif., Aug. 25 /PRNewswire/ -- Xecom Corporation (Xecom)
(BB: XECM) announced today that its wholly owned subsidiary
"Select Switch Systems, Inc. (SSI)" has completed the total refinancing of its
long term AAFES Military subcontract in the form of an expandable capital
lease facility totaling more than $30,000,000.
The new financing package was obtained through First Continental Capital
Corporation of Dallas, Texas acting as Trustor for First Security Bank,
National Association of Salt Lake City, Utah, Trustee for the owner/lender.
Terms of the financing, which has been utilized to eliminate all prior
long term financing and construction advances from Fujitsu Business
Communication Systems (FBCS) and Sprint Corporation L.P., include a 74 month
payment period; a substantially lower effective interest rate; and a total
payment deferral of over 10 months.
The financing is also expandable to accommodate construction at new bases
and for additions to existing base installations, pending the approval of
Sprint Corporation under amendment provisions of the existing SSI military
subcontract.
Joseph C. Vigliarolo, Xecom CEO, stated that "the new financing package
culminates a full year of effort to restructure provisions of the initial SSI
subcontract, and to bring the payments for prior Base Construction in line
with anticipated growth of revenues from an expanding base of military
customers."
Mr. Vigliarolo credited the completion of the financing, primarily to the
efforts of Dennis Casey who has operated in a Chief Executive capacity for SSI
since September 4, 1996. He said, "Mr. Casey's primary focus has been on
subcontract restructure, margin improvement, and refinancing, including
various guarantees and payment deferrals."
Mr. Casey's Telecommunication experience includes seven years as Vice
President of Marketing for GTE Corporation's Telephone Operations with annual
revenues exceeding $10 billion. He also previously raised over $100,000,000
in various equity and debt financing for two telecommunications companies
which he founded.
Mr. Vigliarolo added that, "under a new three year contract with Xecom,
Mr. Casey will direct and focus SSI's efforts as follows:
1) Revenue expansion at existing and new bases, under the ten year AAFES
contract.
2) Launching a (9-15-97) new "FaMilitary" Program directed toward
families of military personnel wherein family-related, long distance calls
(collect and/or credit card) calls may be initiated by a soldier, but billed
to pre-approved family members.
3) Directing SSI's entry and expansion in the CLEC market where the
company will immediately file for "facilities based" CLEC status, permitting
it to participate in the sharing of Originating and Terminating Access Fees as
paid by long distance carriers for current long distance traffic generated by
Military Personnel participating in the AAFES program.
4) Selecting and prioritizing CLEC end office construction and Internet
opportunities including the potential partnering with various
Telecommunication Organizations and/or Switch Manufacturers.
5) Initiating large scale reductions in local trunking costs by rerouting
existing traffic over the Sprint Network and by converting existing local
trunk terminations to long distance access trunks for Dial Around (1-800)
traffic coincident with the achievement of CLEC status.
Mr. Vigliarolo closed stating that "the company has become current on all
accounts payable; continues to maintain a positive cash flow; and expects to
achieve operating profitability prior to the end of the 10 month payment-
deferral period." He added that, "substantial Engineering and Construction
has already been completed at Ft. Knox, Ft. McPherson, and Redstone Arsenal
which are part of a twelve-base expansion forecast over an 18 month period."
Xecom Corp., through its wholly owned subsidiary, Select Switch Systems,
Inc., installs, maintains and operates turnkey residential barracks
telecommunications services through a 10-year exclusive subcontract agreement
with Sprint Corporation L.P., to the nation's Army and Air Force
installations.
Certain statements in this press release may include forward-looking
comments regarding among other things, availability of funding, technical and
business progress. The Company's actual results may vary materially from
those forward-looking statements due to risks and uncertainties to which the
Company is subject such as delays in installations, failure to meet milestones
or other obligations under collaborative agreements and other risks, which are
described in the Company's Form 10.
SOURCE Xecom Corporation
-0- 08/25/97
/CONTACT: Financial Internet Group, 760-770-7133 or Toll Free:
888-770-7133/ |
