Brookside Technology Reaches Agreement in Principle With Financial Partners
April 01 2010 - 10:32AM
Marketwired
Brookside Technology Holdings Corp. (OTCBB:
BKSD) today announced that it has reached a non-binding agreement
in principle with Chatham Credit Management III LLC, the Company's
senior lender ("Chatham Capital"), and Vicis Capital Master Fund, a
sub-trust of Vicis Capital Series Master Trust, and the Company's
largest preferred shareholder ("Vicis"), to restructure the
Company's senior credit facility and to further capitalize the
Company. Among other things, the Company anticipates that, at the
closing of the contemplated transactions, Vicis would invest an
additional $3 million in equity and Chatham Capital would agree to
modify the Company's senior credit facility to waive all prior
defaults, extend the term of the senior loan to September 23, 2012,
and eliminate and/or modify certain financial covenants.
Michael Nole, Chairman and CEO of Brookside, commented, "The
past year has demonstrated the great resolve of our Company, the
tremendous loyalty of our employees and customers alike, and the
support of our financial partners. This anticipated restructuring
and capitalization comes at a time when our Company is gaining
momentum and serving a growing range of organizations and
geographical markets. Additionally, this event enables us to once
again look for accretive acquisitions that align with our business
model and further expand our national footprint." With offices
throughout California, Kentucky, Indiana and Texas, the Company is
becoming one of the largest distributors of voice and data
convergent communications, video and Web conferencing, access
control, security and surveillance.
Shad Stastney, Managing Partner of Vicis, added, "Vicis has
never been so confident in Brookside and its management team. We
believe our additional equity investment will provide the necessary
working capital for the Company to enhance its organic growth and
target attractive acquisitions." The closing of the contemplated
restructuring and capitalization is expected to occur by April 15,
2010, but is subject to various conditions, including the
preparation and execution of mutually acceptable loan modification
and equity investment agreements. While the Company is working
diligently towards a timely closing and does not anticipate any
obstacles in this process, there can be no assurances that these
conditions will be satisfied or the contemplated transactions
completed.
About Brookside Technology Holdings
Corp.
Brookside Technology Holdings Corp., through its subsidiary
Companies, is a leading provider of voice and data convergent
communications, video and Web conferencing, access control,
security and surveillance. Specializing in analyzing, designing,
selling, and implementation, Brookside offers a unique portfolio of
products and services that solve today's telecommunications
challenges by combining technology, business, and financial
solutions. Brookside's customers include both commercial and
state/government organizations of all types and sizes throughout
the United States. The Company seeks to grow organically and
through the acquisition of complementary businesses looking to
capitalize on the highly specialized growth market of providing
turnkey converged voice and data solutions. With a proven track
record of acquiring profitable businesses at attractive valuations,
Brookside plans to leverage its expanding capabilities and combined
customer bases of its portfolio companies. Additional information
on the company can be found at www.brooksideus.com.
Brookside Contact: Nicholas Salerno ANA Consultants, LLC (813)
787-0760
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