Multiband Extends Debt Maturity Dates, Terms to Acquire MDU Communications Amended
MINNEAPOLIS, Jan. 7, 2013 /PRNewswire/ -- Multiband Corporation, (NASDAQ: MBND), a leading Home Service Provider (HSP) for DIRECTV and the nation's largest DIRECTV Master System Operator (MSO) for Multiple Dwelling Units (MDU's), announced today that it has extended the maturity dates of the debt agreements with its secured lenders and has reached an agreement in principal with MDU Communications International, Inc. ("MDUC") to revise certain terms of the definitive agreement covering Multiband's acquisition of MDUC.
Under the terms of the amended debt agreements, Multiband will make certain principal and interest payments until January 2014, the details of which can be found in its Form 8-K filed with the Securities and Exchange Commission on January 7, 2013. The debt may be prepaid without penalty.
In addition, Multiband has revised certain terms of its agreement to acquire 100% of the outstanding stock of MDUC. The revised terms of the agreement provide that Multiband will issue redeemable convertible preferred stock in exchange for MDUC's common stock. The preferred stock would carry a dividend coupon of 6.25% and would convert to common stock under certain conditions at $4 per share. The agreement, which will require approval by a majority of MDUC's shareholders as well as their lenders, has been extended to expire February 28, 2013.
James L. Mandel, Multiband CEO, stated, "We are very pleased to announce that we are moving all of our key initiatives forward. The extension of our financing allows the Company to conclude permanent growth facilities in an orderly process while allowing management to focus on continuing operations and additional long term growth strategies."
About Multiband Corporation
Multiband Corporation (Nasdaq: MBND) 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. Multiband also supplies broadband cable and satellite internet solutions for homes and businesses across the nation. As the largest nationwide DIRECTV master system operator in the Multiple Dwelling Unit (MDU) market and one of the largest full-service home service providers (HSPs), Multiband is a driven leader in a competitive industry. Additionally, Multiband is a leading provider of software and integrated billing services to MDUs on a single bill, including video, voice, data and other value-added local services, both directly and through strategic partnerships. Multiband focuses on providing world-class customer service and the highest level of performance for all partners and customers, from multinational corporations to individual families. Multiband is headquartered in Minneapolis, Minn., and has offices strategically placed around the continental United States.
Statements about our future expectations are "forward-looking statements" within the meaning of applicable Federal Securities Laws, and are not guarantees of future performance. When used herein, the words "may," "will," "should," "anticipate," "believe," "appear," "intend," "plan," "expect," "estimate," "approximate," and similar expressions are intended to identify such forward-looking statements. These statements involve risks and uncertainties inherent in our business, including those set forth in our most recent Annual Report on Form 10-K for the year ended December 31, 2011, and other filings with the SEC, and are subject to change at any time. Our actual results could differ materially from these forward-looking statements. We undertake no obligation to update publicly any forward-looking statement.
Contact: James Mandel, CEO for Multiband Corporation at (763)504-3000
Cameron Donahue, Hayden IR, (651) 653-1854 or firstname.lastname@example.org
SOURCE Multiband Corporation