RESCHDULING OF DEBT - PR
PRINCETON, N.J.--(BUSINESS WIRE)--Nov. 25, 1997--
Reschedules Debt, Invests In New Preferred Stock;
Intek Will Get $15 Million In Cash
Intek Diversified Corporation (NASDAQ:IDCC), a fast-growing provider of specialized mobile radio (SMR) services, today announced it has reached an agreement in principle with the company's majority shareholder, U.K.-based Securicor Communications Ltd., for a major re-financing of Intek's debt.
Under the agreement, outstanding loans to Intek from Securicor totaling approximately $23 million, payable beginning October, 1998, will be converted to a term loan with principal payments re-scheduled to begin July, 2001.
Subject to Intek shareholder approval, Securicor has also agreed to invest additional cash for a new class of Intek preferred stock with aggregate proceeds of $15 million.
Commenting on the re-financing program, Intek Chairman and CEO Robert Shiver stated: "Securicor's restructuring of our debt, along with an infusion of $15 million in cash, represents a powerful vote of confidence in Intek by our majority shareholder. Securicor has now significantly strengthened its financial commitment to the company and its continued growth. The financing brings us substantially closer to our goal of becoming the leading global supplier of cost-effective, state-of-the-art wireless technologies, products and services."
Intek Diversified Corporation operates Specialized Mobile Radio (SMR) systems in the U.S. through its RoameR One(TM) subsidiary, the dominant 220 MHz license holder in the U.S., with over 250 sites covering 120 markets and a population base of 175 million people.
Another subsidiary, Radiocoms, manufactures Land Mobile Radio (LMR) products utilizing Intek's Linear Modulation (LM) technology. LM technology, developed by the company's LMT subsidiary, is a spectrum-efficient, patented narrowband technology, which can overlay digital and analog radio transmissions and provide up to a six-fold increase in a system's capacity. Intek's LM technology is generally considered to offer the fastest data rate capability available in trunked radio system technology.
Intek's Midland USA subsidiary is a leading distributor of LMR products, manufactured by both Radiocoms and others, operating through a well-established base of authorized dealers and resellers in the U.S. who also market RoameR One's services. -0- Safe Harbor statement under the Private Securities Litigation Reform Act of 1995: This release contains forward-looking statements that are subject to risks and uncertainties, including, but not limited to, the impact of competitive products and pricing, product demand and market acceptance, reliance on key strategic alliances, fluctuations in operating results and other risks detailed from time to time in the company filings with the Securities and exchange Commission.
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