Tuesday March 31, 7:03 am Eastern Time
Company Press Release
Chadmoore Wireless Group, Inc. Announces Letter of Intent for $10 Million Debt Financing
$5 Million Term Loan and $5 Million Revolving Credit Facility
LAS VEGAS--(BUSINESS WIRE)--March 31, 1998--Chadmoore Wireless Group, Inc. (OTC BB:MOOR - news), a leading provider of specialized mobile radio (SMR) communication services, announced today that it has signed a letter of intent with Foothill Capital Corp. (''Foothill''), a leading asset-based lender and wholly owned subsidiary of Norwest Corp. (NYSE:NOB - news), that calls for Foothill to provide $10 million of secured debt financing to Chadmoore in the form of a $5 million term loan and $5 million revolving credit facility.
Closing of the contemplated transaction, which remains subject to certain contingencies, is expected to occur within the next several weeks.
In making this announcement, Robert W. Moore, president and CEO of Chadmoore, stated, ''This financing with Foothill should complete our long-term capitalization effort for funding full-scale roll-out of our commercial SMR service in all 168 of our markets.
''As we announced on March 4, Recovery Equity Partners II, L.P. has committed to provide up to $10 million of equity capital for the company, contingent on our raising $10 million of secured debt as well. Recovery has informed us that the Foothill financing, if completed as currently contemplated, would satisfy this contingency,'' he added.
''We are excited about the prospects of working with Foothill and the financial strength that this relationship would add to our business,'' noted Jan S. Zwaik, Chadmoore's chief operating officer. In referring further to Foothill, he added, ''From among the several major lending institutions that have expressed interest in this financing, we believe that we have selected a superb partner capable of providing long-term support for the company.''
Chadmoore Wireless Group, Inc. is the second-largest holder of frequencies in the United States in the 800MHz band for commercial specialized mobile radio (SMR) service, and controls the largest amount of available spectrum in the industry. The company's footprint covers more than 53 million people in 168 markets, focusing on secondary and tertiary cities throughout the United States.
Also known as dispatch one-to-many, or push to talk, Chadmoore's commercial SMR service enables reliable, cost-effective, real-time voice communications for smaller and medium-sized businesses that rely on mobile workforces. For a flat fee of approximately $15.00 per radio per month, customers enjoy unlimited air-time for communicating instantaneously with their teams.
Foothill Capital Corp. is a wholly owned subsidiary of Norwest Corp. and specializes in providing asset-based financing and innovative secured debt facilities of up to $150 million for middle market companies.
Statements contained in this press release that are not historical facts are forward-looking statements as that term is defined by the Private Securities Litigation Reform Act of 1995. Although Chadmoore Wireless Group, Inc. believes that the expectations reflected in such forward-looking statements are reasonable, the forward-looking statements are subject to risks and uncertainties that could cause actual results to differ from those projected.
Such risks and uncertainties include, without limitation, fluctuations in demand, loss of subscribers, the quality and price of similar or comparable wireless communications services, regulatory delays or denials, ability to complete intended construction, termination of proposed transactions, access to sources of capital and general economics. |
