ATLANTA, June 1 /PRNewswire/ -- Preferred Networks, Inc.
(OTC Bulletin Board: PFNT) (PNI), a leading outsourcing services provider to
the wireless industry, today announced that it has reached agreement to amend
certain terms under its senior credit facility, its equipment vendor credit
facility and its credit facility with a finance company.
In announcing the agreements, PNI CEO Mark H. Dunaway, said, "We are
pleased with the continued support we have received from our lenders. These
amended facilities, in combination with the proceeds from the sale of
Preferred Technical Services, Inc. (PTS), announced today, provide PNI with
additional capital resources as we execute our business plan."
Under the terms of the amendment to its senior credit facility, the
Company used $1.75 million of the cash proceeds from the sale of PTS to reduce
its outstanding principal balance; however, the Company has the ability to
reborrow up to $750,000 for working capital purposes during the remaining term
of the facility. The amendment also contained certain modifications to the
terms, conditions and financial covenants of the facility. The Company is
required to make monthly principal amortization payments to the senior lender
until April 30, 2000, at which time the remaining principal balance is due.
Under the terms of the amendment to its equipment vendor credit facility,
the Company received a waiver and deferral of payments of monthly principal
amortization due in 1999. Interest only is payable during 1999 and monthly
principal payments will resume in January 2000. The deferred amounts will be
due in May 2000.
Under the terms of the amendment to its credit facility with a finance
company, the Company received deferral of payments of monthly principal
amortization due through April 2000. Interest only is payable during this
time period and principal payments will resume in May 2000. The deferred
amounts will be due in May 2000.
Preferred Networks, Inc., headquartered in metropolitan Atlanta, provides
outsourcing solutions to the wireless industry which allow companies to offer
branded wireless services directly to subscribers, while relying on PNI to
provide high-quality network and product services. PNI offers its services
through its Access Services Division, a provider of wholesale paging network
services and information services technical support, and through its wholly
owned subsidiary, EPS Wireless, Inc., a national provider of paging and
cellular product repair services, sales of new, used and refurbished paging
and cellular products and inventory management services. PNI's address on the
World Wide Web is http://www.pni.net .
The Private Securities Litigation Reform Act of 1995 provides a "safe
harbor" for forward-looking statements. Certain information included in this
News Release and materials filed or to be filed by the Company with the
Securities and Exchange Commission (as well as information included in oral
statements made or to be made by the Company) contains statements that are or
will be forward-looking, such as statements relating to acquisitions,
construction and other business development activities, future capital
expenditures, timing of the Company's need for additional capital, financing
sources and availability and the effects of laws and regulations (including
FCC regulations) and competition. Such forward-looking information involves
important risks and uncertainties that could significantly affect anticipated
results in the future and, accordingly, such results may differ from those
expressed in any forward-looking statements made by or on behalf of the
Company.
SOURCE Preferred Networks, Inc.
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Related links:
http://www.pni.net
Company News On-Call:
http://www.prnewswire.com/comp/109794.html or fax,
800-758-5804, ext. 109794
CONTACT:
David Sullivan, Vice President of Corporate
Relations of Preferred Networks, Inc., 770-582-3590
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