Mobilicity Inc. has entered into a C$75 million second lien financing. The first stage consists of a C$35 million facility provided by certain lenders and the second stage will consist of a C$75 million follow-on facility that will be backstopped by the lenders. Formerly known as Data & Audio-Visual Enterprises Wireless, Mobilicity is a Canadian smart mobile carrier, and has been backed by US private equity firm Quadrangle Capital Partners since 2008.
Data & Audio-Visual Enterprises Wireless Inc. (“Mobilicity”) is pleased to announce that it has entered into a $75 million second lien financing.
This new financing will be available to Mobilicity in two stages. The first stage consists of a $35 million facility provided by certain lenders (the “Lenders”) and the second stage will consist of a $75 million follow-on facility that will be backstopped by the Lenders. The first stage will be available in three draws, with each draw becoming available upon satisfaction of certain conditions precedent. At this time, the first draw of $15 million has been completed.
Certain existing debt holders of Mobilicity will have the right to subscribe as lenders under the follow-on facility. Proceeds of the follow-on facility will be used to repay the first $35 million facility in full and provide Mobilicity with additional capital for general corporate purposes.
This additional financing significantly enhances Mobilicity’s financial strength and is an important step to the achievement of Mobilicity’s strategic goals going forward.
About Mobilicity (DAVE Wireless)
Mobilicity, Canada’s smart mobile carrier, was created to bring down the cost of wireless with unlimited talk, text and data plans, affordable North American coverage, plus popular handsets and smartphones – without locking customers into contracts or charging extra or hidden fees. Everything Mobilicity does adds up to a better wireless experience, not an expensive one. NOW THAT’S SMART.
Formerly known as Data & Audio-Visual Enterprises Wireless Inc. (DAVE Wireless), the company is led by Obelysk, a diversified Canadian holding company, and Quadrangle Capital Partners, a global investor in the telecommunications and media sectors. Mobilicity was named one of Canada’s Top 25 Up and Coming Information & Communication Technology start-ups in 2010 by the Branham Group Inc.
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Sheryl Steinberg, Director, Corporate Affairs