ATLANTA, Dec. 13 /PRNewswire/ -- Preferred Networks, Inc.
(OTC Bulletin Board: PFNT) (PNI), a leading outsourcing services provider to
the wireless industry, today reported that it has restructured certain terms
and conditions of its senior credit facility and its primary equipment credit
facility.
In connection with the sale of its wholly owned subsidiary, EPS Wireless,
Inc. ("EPS"), which PNI also announced today, the Company received
$14.9 million in cash proceeds, less certain holdbacks. Approximately
$7.0 million of the proceeds were used to retire the Company's term note with
its senior lender and to reduce the Company's outstanding balance under its
senior revolving credit facility. Concurrently, the senior lender amended
certain terms and conditions of the Company's revolving credit facility to
establish a $2 million facility to be used for working capital purposes that
matures March 2001.
In addition, the Company used approximately $2.5 million of the proceeds
from the sale of EPS to repay a portion of its notes under its primary
equipment credit facility. Under the terms of this repayment, the equipment
lender amended certain payment terms with respect to the outstanding balance
under the remaining notes to suspend principal payments until March 2001
(although interest will still be paid), at which time monthly principal and
interest payments will commence and continue until December 2001.
The remaining proceeds from the transaction, net of expenses, will be used
for working capital purposes by the Company.
Commenting on the restructuring of these credit facilities, Chairman and
Chief Executive Officer, Mark H. Dunaway said, "The proceeds from this
transaction have enabled us to significantly strengthen our balance sheet,
reducing our total outstanding debt by approximately 60% and providing working
capital funding for our future. In addition, we are particularly pleased with
the support we have received from our senior lender in providing growth
financing for PNI under a new working capital facility."
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 services and technology gateway products. PNI
offers its services through its PNI Access Services Division(SM). PNI's
address on the World Wide Web is: http://www.pni.net .
Safe Harbor Statement Under the Private Securities Litigation Reform Act
of 1995: The statements contained in this release which are not historical
facts, such as those concerning future financial performance and growth, are
forward-looking statements that are subject to risks and uncertainties,
including those identified in the Company's 1998 Annual Report on Form 10-K
and Quarterly 10-Q filings, and actual results could differ materially from
those anticipated in the forwarding-looking statements. In particular,
statements relating to the competitive position and performance of
Platform1(TM) and iTerminal(TM) and their expected performance in the market
place are forward-looking statements that are subject to risks and
uncertainties. The Company operates in a highly competitive marketplace and
new product developments by competitors can occur at any time, thereby
diminishing the attractiveness of the Company's products. Also, there can be
no assurance that the marketplace will find the price and functionality of the
Company's products attractive, which also can adversely affect product sales.
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:
Kathryn Loev Putnam, Senior Vice President
and Chief Financial Officer of Preferred Networks, Inc.,
770-582-3507
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