PRINCETON, N.J.-Securicor Communications Ltd., the majority shareholder of Intek Diversified Corp., has agreed to a major refinancing of Intek’s $23 million debt.
Under the agreement, the loans that were payable beginning October 1998 will be converted to a term loan with principal payments rescheduled to begin July 2001.
Subject to Intek shareholder approval, Securicor also has agreed to invest additional cash for a new class of Intek preferred stock with aggregate proceeds of $15 million.
“Securicor’s restructuring of our debt, along with an infusion of $15 million in cash, represents a powerful vote of confidence in Intek by our majority shareholder,” said Robert Shiver, Intek chairman and chief executive officer. “Securicor has now significantly strengthened its financial commitment to the company and its continued growth.”
Intek operates specialized mobile radio systems in the United States, with more than 250 sites covering 120 markets and a population base of 175 million people.
