ATLANTA, Aug. 12 /PRNewswire/ -- Preferred Networks, Inc.
(Nasdaq: PFNT) (PNI) today announced that it has signed an agreement with
NationsBank for a $20 million revolving credit facility to be used primarily
for financing paging network acquisitions and capital expenditures. The
outstanding balance under this facility bears interest at a rate of prime plus
1% or at a rate of LIBOR plus 3.75%, at the Company's option. Interest only
is payable monthly in arrears with the entire principal due in full in August
1998. This new credit facility contains various financial covenants and
restrictions, and certain conditions which must be met, including FCC approval
of particular transactions, prior to drawing on the facility.
"We are very pleased with our relationship with NationsBank and their
support of our growth plans," said Kim Smith Hughes, chief financial officer.
"This credit facility will assist us in continuing our nationwide network
construction and in financing possible future acquisitions."
PNI provides high-quality, reliable wholesale paging network services. As
a carrier's carrier, PNI markets its networks to traditional resellers of
paging services and to other carriers and resellers that have their own
switching terminals and connect to PNI's switching centers. PNI's strategy is
complemented by its centralized network architecture and use of a low-cost,
high-power paging frequency for which it is licensed or has licenses pending
nationwide.
SOURCE Preferred Networks, Inc.
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CONTACT:
Mary Ann Haskins, Preferred Networks,
770-806-6970
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