- Includes the Early Release of $16.5 Million of Glenayre's Cash that Served as Collateral -
NEW YORK, June 22 /PRNewswire-FirstCall/ -- Glenayre Technologies, Inc. (NASDAQ:GEMS), a global provider of messaging solutions through Glenayre Messaging and entertainment products and services through Entertainment Distribution Company, LLC ("EDC"), today announced that EDC and Wachovia Bank, National Association, and ING Capital LLC have agreed to certain amendments to EDC's credit agreement (the "Facility"). The amendments include the early release of $16.5 million of Glenayre's cash, effective as of today, which served as collateral for the Facility, the movement of all principal payment dates from June 30 to December 31 of each year, and the modification of the leverage ratio and fixed charge coverage ratio.
Glenayre's Chairman and Chief Executive Officer Clarke Bailey stated, "These amendments immediately increase our liquidity and financial flexibility with the early release of $16.5 million of restricted cash. In addition, they are an endorsement of EDC's business plan and the operating progress of the last year." The Company expects to file a Form 8-K with the U.S. Securities and Exchange Commission that contains a complete copy of the amendments to the credit agreement. A copy of the Form 8-K, will be available on the investor relations section of the Company's website at http://www.glenayre.com/ .
About Glenayre Technologies Comprised of two divisions, Glenayre Technologies (NASDAQ:GEMS) is a global provider of messaging solutions through the Glenayre Messaging business and entertainment products through Entertainment Distribution Company, LLC (EDC). Headquartered in Atlanta, GA, Glenayre Messaging is an international supplier of next-generation messaging solutions and enhanced services for wireless and wireline carriers and MSO/cable companies. Glenayre Messaging provides solutions for voice, fax and e-mail messaging, including voice mail, video mail, multimedia messaging (MMS), and short message service (SMS). Entertainment Distribution Company is the largest provider of pre-recorded entertainment products, including CDs and DVDs, for Universal Music Group, the world leader in music sales. Headquartered in New York, EDC's operations include manufacturing and distribution facilities throughout North America and in Hanover, Germany. For more information, please visit http://www.glenayre.com/ .
Safe Harbor Statement This news release contains statements that may be forward-looking within the meaning of applicable securities laws. The statements may include projections regarding future revenues and earnings results, and are based upon the Company's current forecasts, expectations and assumptions, which are subject to a number of risks and uncertainties that could cause the actual outcomes and results to differ materially. Some of these results and uncertainties are discussed in the Company's most recently filed Annual Report on Form 10-K and the Company's most recently filed Quarterly Report on Form 10-Q. These factors include, but are not limited to potential intellectual property infringement claims; internal control deficiencies, litigation; potential acquisitions and strategic investments; environmental laws and regulations; ability to attract and retain key personnel; volatility of stock price; competition; variability of quarterly results and dependence on key customers; international business risks; sensitivity to economic trends and consumer preferences; increased costs or shortages of raw materials or energy; advances in technology and changes in customer demands; development of digital distribution alternatives including copying and distribution of music and video files; continuation and expansion of third-party agreements; proprietary technology; potential changes in government regulation; potential market changes resulting from rapid technological advances; restructuring activities; variability in production levels; and compliance with Senior Secured Credit Facility covenants. The Company assumes no obligation to update any forward-looking statements and does not intend to do so. DATASOURCE: Glenayre Technologies, Inc.
CONTACT: Jennifer Gery (media) or Mike Smargiassi (investors), both of Brainerd Communicators, Inc., +1-212-986-6667, or , for Glenayre Technologies, Inc.
Web site: http://www.glenayre.com/
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