UniTek Global Services, Inc.
) has received a commitment letter from
Apollo Investment Corporation
) for financing arrangements worth $75 million. The parties in
the financing arrangement comprising an asset-based revolving
credit facility (ABL Facility) will enter into a definitive
documentation before July 10, 2013.
APOLLO INV CP (AINV): Free Stock Analysis
DYCOM INDS (DY): Free Stock Analysis Report
EMCOR GROUP INC (EME): Free Stock Analysis
UNITEK GLOBAL (UNTK): Free Stock Analysis
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UniTek intends to utilize the funds from ABL Facility to replace
the existing revolving credit and security agreement. Refinancing
of outstanding debt will offer financial flexibility for the
company. The ABL Facility will also provide additional liquidity
through increasing borrowing availability on completion.
The increase in borrowing availability over current availability
will be $30 million through Oct 31, 2013. The borrowing
availability will be over $25 million from Nov 1, 2013, through
Nov 30, 2013, and $20 million thereafter.
UniTek will pay Apollo a commitment fee equivalent to 4% of the
total amount of the ABL Facility. The commitment fee will
be payable in two equal installments due upon receipt of the
commitment letter and initial funding of the ABL Facility.
UniTek, on Apr 12, 2013, revealed its estimated preliminary
financial results for 2012. The company also disclosed that it
will restate the financial results for the interim periods ended
Mar 31, 2012, Jun 30, 2012, and Sep 29, 2012, the fiscal year
ended Dec 31, 2011, and the interim period ended Oct 1, 2011.
Blue Bell, PA-based UniTek, a provider of engineering,
construction management, installation and technical services to
the wireless and wireline telecommunications, satellite
television, and broadband cable industries in the U.S. and
Canada, is now underlining completion of its financial reporting
UniTek currently retains a short-term Zacks Rank #3 (Hold).
Other companies in the building-heavy construction industry with
favorable Zacks Rank are
Dycom Industries Inc.
EMCOR Group Inc.
), each carrying a Zack Rank #1 (Strong Buy).