Alvarion® Reaches Agreement with Principal Lender to Modify Terms of Its Three-Year Loan
Posted on April 25, 2012 at 10:30 AM EDT
Alvarion® Ltd. (NASDAQ: ALVR), a provider of optimized wireless broadband solutions addressing the connectivity, coverage and capacity challenges of public and private networks, today announced it was granted a temporary forbearance of its breached covenants and reached a general agreement with its principal lender to modify the terms of the loan, which the company entered into to finance the acquisition of Wavion Inc. The agreement will include a modest increase in the interest rate and the repayment of approximately $7 million of principal on the loan.
The current outstanding balance under the $30 million three-year loan is approximately $28.6 million, reflecting regular principal and interest payments made to date. The loan modification agreement provides that Alvarion will repay approximately $7 million of principal in addition to its normal loan payments by July 2012, after which the outstanding balance of the loan is expected to be approximately $20 million.
Lior Shemesh, Chief Financial Officer of Alvarion, said, “We are pleased that we were able to agree on these modifications with our lender, and we believe the revised terms of the loan afford us adequate operational flexibility during the remaining term of the loan. With $51.5 million in cash at the end of the first quarter of 2012, we will have adequate cash after the partial repayment to fund our operations, and we appreciate the support and cooperation of our lender in resolving this matter quickly so that we can focus on improving our financial performance going forward.”
Alvarion Ltd. (NASDAQ:ALVR) provides optimized wireless broadband solutions addressing the connectivity, coverage and capacity challenges of telecom operators, smart cities, security, and enterprise customers. Our innovative solutions are based on multiple technologies across licensed and unlicensed spectrums. (www.alvarion.com)
This press release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on the current expectations or beliefs of Alvarion’s management and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. The following factors, among others, could cause actual results to differ materially from those described in the forward-looking statements: our failure to fully implement the 2012 plan referred to above, our inability to reallocate our resources and rationalize our business in a more efficient manner, potential impact on our business of the current global macro-economic uncertainties, the inability of our customers to obtain credit to purchase our products as a result of global credit market conditions, the failure to fund projects under the U.S. broadband stimulus program, continued delays in 4G license allocation in certain countries; the failure of the products for the 4Gmarket to develop as anticipated; Alvarion’s inability to capture market share in the expected growth of the 4G market as anticipated, due to, among other things, competitive reasons or failure to execute in our sales, marketing or manufacturing objectives; the failure of the Alvarion’s strategic initiatives to enable Alvarion to more effectively capitalize on market opportunities as anticipated;; the potential incurrence by Alvarion of unknown liabilities of Wavion; the failure of Alvarion to effectively integrate the business and technology of Wavion into that of Alvarion and Alvarion’s products and realize the expected synergies from the acquisition; the failure of Alvarion to gain market acceptance for the Wavion products as contemplated; the failure of the markets for Wavion’s and Alvarion’s products to grow as anticipated; inability to further identify, develop and achieve success for new products, services and technologies; increased competition and its effect on pricing, spending, third-party relationships and revenues; as well as the inability to establish and maintain relationships with commerce, advertising, marketing, and technology providers and other risks detailed from time to time in the Company’s 20-F Annual Report Risk Factors section as well as in other filings with the Securities and Exchange Commission.
Information set forth in this press release pertaining to third parties has not been independently verified by Alvarion and is based solely on publicly available information or on information provided to Alvarion by such third parties for inclusion in this press release. The web sites appearing in this press release are not and will not be included or incorporated by reference in any filing made by Alvarion with the Securities and Exchange Commission, which this press release will be a part of.
You may request Alvarion's future press releases by contacting Sivan Farfuri, Sivan.firstname.lastname@example.org or +972.3.767.4333. Please see the Investor section of the Alvarion website for more information: http://www.alvarion.com/index.php/en/investors
Alvarion®, its logo and certain names, product and service names referenced herein are either registered trademarks, trademarks, trade names or service marks of Alvarion Ltd. in certain jurisdictions. All other names are or may be the trademarks of their respective owners.
Lior Shemesh, CFO, +1.760.685.2007
Claudia Gatlin, +1.212.830.9080
In the U.S.:
John Conrad, +1.703.390.1538
Janine Wiener, +972.54.322.5946
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