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To: The Ox who wrote (9690)	1/19/2005 12:55:42 PM
From: The Ox	Respond to of 13403

OT SRXA: here's the scoop. DJ SR Telecom Gets New Loan, Orders; Cuts Guidance >SRXA MONTREAL (Dow Jones)--SR Telecom Inc. (SRXA) has entered into a non-binding letter of intent with an unidentified "major" U.S. lender, for a five-year revolving senior secured credit facility of up to US$50 million. In a news release Wednesday, the company said the amount that may be drawn under the facility is limited to a borrowing base defined by percentages of qualifying receivables, inventory and the fair market value of the land and building owned by SR Telecom in Montreal. The facility will bear interest at floating rates related to LIBOR. Completion of the senior secured credit facility is subject to a number of conditions, including satisfactory completion of due diligence, a concurrent issuance of equity and/or subordinated debt of no less than US$30 million, execution of satisfactory inter-creditor and subordination agreements with the lenders of its subsidiary, CTR, negotiation of satisfactory documentation and other conditions and covenants customary for a facility of this nature. SR Telecom said the senior secured credit facility is part of a broader comprehensive refinancing package. It didn't elaborate, noting that details of the refinancing package will be announced in the coming weeks. Company Web Site: srtelecom.com AND DJ SR Telecom Gets New Loan, Orders; Cuts Guidance >SRXA -2- SR Telecom Inc. (SRXA) said it has received purchase orders valued at about C$10 million from a major telecommunications operator in Latin America. The company wasn't identified. These orders are part of the previously announced frame contract under which the operator selected the SR500 family of fixed wireless access systems, it noted. Deliveries are scheduled to start immediately. SR Telecom said further deployment and expansion for this universal access program is expected to take place in 2005. The company also said it has received new orders valued at about C$1 million from PT Aplikanusa Lintasarta, the largest data and corporate network communications provider in Indonesia. These add-on orders are for a project that was initiated in September 2003. Lintasarta has selected the airstar wireless broadband product to provide ATM, frame relay and clear channel services to its customers in the Java, Kalimantan and Sulawesi regions of Indonesia, the company said. Deliveries are scheduled to commence immediately. AND DJ SR Telecom Gets New Loan, Orders; Cuts Guidance >SRXA -3- Due to unanticipated delays in receiving major purchase orders under existing frame contracts and the deferral of certain shipments of other orders into the first quarter of 2005, SR Telecom Inc. (SRXA) has cut its guidance for the fourth quarter of fiscal 2004. As reported in October, SR Telecom posted third-quarter revenue of C$37.4 million. The company had said at the time that it expected an increase in fourth-quarter revenue and to be at breakeven in its core wireless business. It also saw positive EBITDA on a consolidated basis. The company said Wednesday that it now expects consolidated revenues in the fourth quarter to be C$22 million to C$25 million. Moreover, the company said it won't achieve breakeven results in its core wireless business in the fourth quarter, and will generate a significant loss. Consolidated cash balances at year-end were about C$6.9 million, of which about C$1.9 million was restricted, it noted. Due to anticipated demand under existing frame contracts and bids in progress and the deferral of certain contracts from 2004 into 2005, SR Telecom said it's confident it will achieve consolidated revenues in the range of C$170 million to C$200 million in 2005. However, SR Telecom has also been hurt by a reduction in the availability of supplier credit, which in turn has slowed raw material purchases and production. This production slowdown will have the effect of producing a significant EBITDA loss during the first quarter of 2005, it said. Despite this loss, and contingent on the anticipated refinancing of the company's existing debt in the near future, the company said it expects to be in a position to increase production by the second quarter of 2005 and to realize consolidated EBITDA in the range of C$15 million for fiscal 2005. SR Telecom designs, manufactures and deploys Broadband Fixed Wireless Access technologies.