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FTE Networks receives initial tenders for 97% of promissory notes
By Tali Rackner
Norfolk, Va., Nov. 12 – FTE Networks, Inc. said 97% of its outstanding senior secured promissory notes, or $3,420,022.32 in principal amount, had been tendered as of Nov. 12, the initial settlement date, according to a filing with the Securities and Exchange Commission.
As previously reported, the company is offering to purchase up to an aggregate of $3,514,511.88 principal amount but not less than an aggregate of $2,811,609.51 principal amount of the notes. These amounts represent 100% and about 80% of the principal amount of the outstanding notes, respectively.
There is no established trading market for the notes.
The payment is $400 per $1,000 principal amount of the notes.
Holders who tender their notes prior to 11:59 p.m. ET on Nov. 19 will receive a $100 premium for a total payment of $500 per $1,000 principal amount of the notes.
The offer began on Nov. 4 and will expire at 11:59 p.m. ET on Dec. 4.
The company selected Nov. 12 as the initial settlement date after the conditions to the offer, including the tender of 80% of the principal amount of the outstanding notes, were satisfied.
A final settlement date will occur promptly following expiration of the offer and is expected to be Dec. 7.
In connection with the offer, the company entered into a credit agreement with Jus-Com, Inc., a subsidiary of the company, as the borrower for about $8 million. Continued availability of funds under the credit agreement is subject to the successful completion of the offer, and proceeds from the credit agreement will be used to fund settlement of the offer and to repay the company's current debt facility with Amerifactors Financial Group, LLC.
FTE Networks is Naples, Fla.-based provider of services to the telecommunications and wireless sector.
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