Goodman Networks Inc. and its subsidiaries have entered into a restructuring support agreement with holders of the company´s 12.125% Senior Secured notes due 2018 who hold more than 75% of the outstanding notes and more than 80% of the company´s equity holders regarding a comprehensive financial restructuring transaction that will result in a stronger balance sheet for the company, the company said.
The proposed transaction, among other things, will reduce the company´s long term debt by approximately USD 212.5m through an exchange of the notes for a cash paydown, new 8% secured notes issued by the company, and preferred and common equity of the company.
Significantly, the proposed transaction and related restructuring will not impact company´s customers, employees, vendors, and other unsecured creditors and the company will honor its obligations to such parties in the ordinary course of business with no disruptions.
The restructuring will be implemented through a prepackaged chapter 11 bankruptcy in the US Bankruptcy Court for the Northern District of Texas. The company will continue to operate its business as usual in all respects and the chapter 11 filing is not expected to have an impact on the company´s operations.
The company intends to file its prepackaged chapter 11 cases in February and hopes to emerge by the end of April.
The summary of the restructuring support agreement contained in this press release is not complete, and the company will include the full copy of the restructuring support agreement in a Form 8-K to be filed with the Securities Exchange Commission.
Kirkland & Ellis LLP serves as legal counsel to the company, Akin Gump Strauss Hauer & Feld LLP serves as legal counsel to an ad hoc group of the notes (the “Ad Hoc Group”), and Greenhill & Co. serves as investment bankers and financial advisors to the Ad Hoc Group.
Goodman Networks is a leading provider of field services to the satellite television industry and network infrastructure and professional services to the wireless telecommunications industry.
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