Telecomm Industries Corp. Announces Financing Package From Merrill Lynch
NAPERVILLE, Ill.--(BUSINESS WIRE)--Dec. 2, 1998--Telecomm Industries Corp. (OTC BB:TCMM) announced today that it has entered into a financing relationship with Merrill Lynch Business Financial Services in order to accommodate the previously reported acquisition growth strategy and to increase working capital.
The specific details of this relationship have been previously reported as a subsequent event in the Company's quarterly report for the third quarter of 1998 on Form 10-QSB. The structure of the financing consists of three facilities. The first is an installment note of $6,000,000 collateralized by substantially all of the assets of the Company. This facility is currently interest bearing at an annualized rate of 2.4% above the 30 day commercial paper rate (5.5% as of September 30th, 1998) and will convert to a term note payable in 60 monthly installments, at the same rate of interest, commencing the first day of the second calendar month following the conversion date (Jan. 31, 1999). The second facility is a working capital line of credit in the amount of $4,000,000. Interest is due monthly at an annualized rate of 2.4% above the 30 day commercial paper rate (5.5% as of Sep. 30, 1998). The line of credit is renewable on September 30th, 2000. The third facility is a $3,800,000 revolving line of credit to be used exclusively for acquisitions. This facility will expire on September 30, 1999, if not utilized.
Telecomm Industries Chairman and CEO, James Lowery, commented, ''We are pleased to announce our relationship with Merrill Lynch and are excited to continue our acquisition strategy. We expect Merrill Lynch
to not only help us achieve our financial goals but provide us with the expertise needed for continued acquisition growth in the future.''
Telecomm Industries Corp. is one of the nation's largest distributors of voice and data services for Ameritech (NYSE:AIT - news), BellSouth (NYSE:BLS - news), and GTE (NYSE:GTE - news). Telecomm combines
these services with products from world class manufacturers to provide single source telecommunications and computing solutions to its business customers. Telecomm Industries specializes in being the single provider of the customer's total communication needs. Telecomm has over 30,000 accounts in five states with more than
17 branch offices strategically located throughout the Midwest.
Certain statements contained in this report that are not historical facts are forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from those set forth in the forward-looking statements. Reference is made to the Company's filings with the Securities and Exchange Commission, including the Company's annual report for fiscal 1997 on Form 10-KSB and the Company's quarterly report for the third quarter of 1998 on Form 10-QSB. Investors should read this release in conjunction with these filings for a description of these and other factors that could cause actual results to differ materially from those in the forward-looking statements.
Contact:
Telecomm Industries Corp.
Dave Gruber, 330/963-0566
or
Telecomm Industries
Mark Travi, 630/369-7111 |
