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.