TeleCommunication Systems Announces Purchase and Retirement of $9.9 Million of 4.5% Convertible Senior Notes

ANNAPOLIS, Md., July 16, 2013 /PRNewswire/ -- TeleCommunication Systems, Inc. (TCS) (NASDAQ: TSYS), a world leader in highly reliable and secure mobile communication technology, has entered into privately-negotiated purchase agreements with noteholders to retire $9.9 million in aggregate principal of its outstanding 4.5% Convertible Senior Notes due in 2014 at par plus 0.25%. The company will use cash to fund the repurchases. The closing of the purchase transactions is expected to occur on July 19, 2013. Following these transactions, approximately $33.6 million in aggregate principal amount of the 4.5% Convertible Senior Notes will remain outstanding.

"The repurchase of the Notes due in 2014 further reduces our near-term debt maturities and reduces interest expense," said Tom Brandt, TCS senior vice president and CFO.

No Solicitation or Registration
This press release does not constitute an offer to sell, or a solicitation of an offer to buy, any security and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offering would be unlawful.

About TeleCommunication Systems, Inc.
TeleCommunication Systems, Inc. (TCS) (NASDAQ: TSYS) is a world leader in highly reliable and secure mobile communication technology.

Forward-looking Statements
This announcement contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended. These statements are based upon TCS' current expectations and assumptions that are subject to a number of risks and uncertainties that would cause actual results to differ materially from those anticipated. The words, "believe," "expect," "intend," "anticipate," "should," "prospect," and variations of such words and similar expressions identify forward-looking statements, but their absence does not mean that the statement is not forward-looking. Statements in this announcement that are forward-looking include, but are not limited to TCS' expectation to close the repurchase transactions on July 19, 2013.

Additional risks and uncertainties are described in the company's filings with the Securities and Exchange Commission (SEC). These include without limitation risks and uncertainties relating to the company's financial results and the ability of the company to (i) sustain profitability, (ii) accurately assess impairment triggering events related to our intangibles, including goodwill; (iii) continue to rely on its customers and other third parties to provide additional products and services that create a demand for its products and services, and to do so at prices that will allow us to continue to fund our operations, (iv) conduct its business in foreign countries, (v) adapt and integrate new technologies into its products and adequately expand its data centers and data delivery systems, (vi) expand its sales and business offerings in the wireless communications industry, (vii) develop software and provide services without any errors or defects and with adequate security threat protections, (viii) protect its intellectual property rights, (ix) have sufficient capital resources to fund its operations, (x) not incur substantial costs from product liability and IP infringement claims and indemnification demands relating to its software, (xi) implement its sales and marketing strategy, and (xii) successfully integrate the assets and personnel obtained in its acquisitions and investments. Existing and prospective investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The company undertakes no obligation to update or revise the information in this press release, whether as a result of new information, future events or circumstances, or otherwise.

(Logo: http://photos.prnewswire.com/prnh/20120503/PH99996LOGO )

Company Contacts:


Tom Brandt

Scott Liolios or Matt Glover

Senior Vice President and CFO

Investor Relations

TeleCommunication Systems, Inc.

Liolios Group, Inc.

Tel 410-280-1001

Tel 949-574-3860

tbrandt@telecomsys.com 

info@liolios.com

 

SOURCE TeleCommunication Systems, Inc.



RELATED LINKS
http://www.telecomsys.com

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