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Fifth Third Bank Provides $30MM Facility to Multiband Corp.

March 22, 2013, 08:03 AM
Filed Under: Telecom
Related: Fifth Third

Multiband Corporation, a leading home service provider (HSP) for DIRECTV and the nation's largest DIRECTV Master System Operator (MSO) for Multiple Dwelling Units (MDU's), has completed a financing transaction with Fifth Third Bank that will provide up to $30.0 million of senior secured debt financing. The financing matures on April 30, 2016 and is subject to certain financial covenants. Additional details are available on the company’s 8K filed with the Securities and Exchange Commission on March 21, 2013. 

The financing package consists of a $20.0 million term loan and a $10.0 million revolving line of credit.  The initial $30.0 million financing package will be used to replace the DirecTECH Holding Company, Inc. note and other debt currently in place as well as for general corporate purposes. This facility reduces the company's interest rate by approximately 50% from the interest rate that has been paid on existing debt.

James L. Mandel, CEO of Multiband, commented, "This is a major milestone for the Company and shows the confidence Fifth Third Bank, a major financial institution, has on the future prospects of Multiband. Our management and the Board of Directors were focused on finding the right partner and this patience has paid off with a top tier lending partner and terms that reflect our current and future financial position. The new financing allows us to pay off debt, currently maturing in 2014, at a significantly lower interest rate and provides the company with growth capital for future opportunities and executing our growth plan, which in turn, paves the way for future returns to shareholders."

Multiband Corporation engages with a vast and growing array of technologies including renewable energy, wireless infrastructure, electrical power systems, digital signage, commercial audio/video solutions, hospitality IPTV and VOD systems. Multiband completes nearly 20% of all DIRECTV's installations, maintenance and upgrades for residents of single-family homes.

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