FTE Networks Announces Completion of Debt Restructuring
July 12 2019 - 8:30AM
FTE Networks, Inc. (NYSE American: FTNW) ("FTE" or the
"Company"), announced that it has completed its previously
announced debt restructuring. The terms and conditions of the debt
restructuring are described more fully in a Current Report on Form
8-K which the Company filed with the Securities and Exchange
Commission on July 8, 2019.
In connection with, or as a result of, the debt
restructuring, the Company achieved the following objectives:
- Reconstituted Board. The Company’s Board
of Directors has been reconstituted to include five new Independent
members who have significant public company experience and strong
business backgrounds and who will also help with industry contacts,
client relationships and business development.
- Restructured Debt. The debt restructuring
extended the debt maturities of substantially all of the Company’s
outstanding indebtedness, which gives the Company additional time
to put a long-term debt strategy in place and has reduced the
Company’s cost of capital by reducing interest rates and on-going
fees to lenders.
- Change of Company Senior Management. In
connection with the recent change of management of the Company,
Fred Sacramone, the President of Benchmark Builders Inc., the
Company’s principal operating subsidiary, and one of the principal
stockholders of Benchmark Builders prior to the sale of Benchmark
Builders to the Company in 2017, was appointed the President and
Chief Executive Officer of the Company, and now has effective
day-to-day management control of the Company in addition to the
effective day-to-day management control of Benchmark Builders.
- Change of Stockholder Voting Control.
Through the issuance of a new class of Series H Preferred Stock
that has perpetual voting rights equivalent to 51% of the total
votes that may be cast by all outstanding shares of capital stock
of the Company, Mr. Sacramone and Brian McMahon, the other
principal stockholder of Benchmark Builders prior to the 2017 sale
of that company to the Company, have been granted effective voting
control of the Company’s capital stock and the ability to elect the
members of the Company’s Board of Directors, subject to certain
contractual rights of the Company’s lenders.
- Return of Capital Stock. While
additional shares of common stock were issued to the lenders under
the Company’s principal credit facility in connection with the debt
restructuring, the Company was successful in its efforts to seek
the return to the treasury of the Company of a significant number
of shares of the Company’s capital stock issued to prior management
in 2018. The Company intends to continue its efforts to seek
the return of additional shares in the future.
“We are very pleased with the completion of the
Company’s debt restructuring, which required months of hard work
and extensive negotiations. We believe the culmination of this
process is a strong first step towards improving the Company’s
overall financial stability and operating effectiveness,” said Fred
Sacramone, FTE’s President and Interim CEO. “We would like to thank
our lenders for working with us to find a solution that benefits
all parties, as well as the Company’s shareholders, and to thank
our customers for their continued support throughout this process.
We look forward to refocusing the Company’s efforts to servicing
our customers and providing value to our shareholders,” Sacramone
concluded.
About FTE Networks, Inc.
FTE Networks, Inc. ("FTNW") is a full-service
provider of construction management and general contracting
services to the interior construction market through its Benchmark
Builders subsidiary. Benchmark provides innovative solutions to the
construction process and strives to achieve high-quality and timely
delivery of projects for its clients. FTE’s Crosslayer and Juscom
divisions provide technology solutions for smart building
platforms, edge computing and network infrastructure solutions for
residential and commercial properties.
Forward-Looking Statements
This release may contain “forward-looking
statements” within the meaning of the safe harbor provisions of the
United States Private Securities Litigation Reform Act of 1995.
Generally, forward‐looking statements can be identified by the use
of forward‐looking terminology such as “believe,” “will,”
“intends,” “expects,” and may include statements regarding matters
that involve known or unknown risks, uncertainties and other
factors that may cause our results, levels of activity, performance
or achievements to differ materially from results expressed or
implied by this release. Forward-looking statements are
neither historical facts nor assurances of future
performance. Instead, they are based only on our current
beliefs, expectations, and assumptions regarding the future of our
business, future plans and strategies, projections, anticipated
events and market trends, the economy and other future
conditions. Because forward-looking statements relate to the
future, they are subject to inherent uncertainties, risks and
changes in circumstances that are difficult to predict and many of
which are outside of our control. These risk factors and
others are included from time to time in documents we file with the
Securities and Exchange Commission, including but not limited to,
our Form 10-K’s, Form 10-Q’s and Form 8-K’s. Our actual
results and financial condition may differ materially from those
indicated in the forward-looking statements. Accordingly, you
should not place undue reliance on these forward-looking
statements. Any forward-looking statement made by us in this
release is based only on information currently available to us and
speaks only as of the date on which it is made. We undertake no
obligation to publicly update any forward-looking statement,
whether as a result of new information, future developments or
otherwise.
For more information, please contact:
Corporate Contact:FTE Networks,
Inc.237 W. 35th Street, Suite 601New York, NY
10001(877) 850-4308ir@ftenet.comNYSE American: FTNW
FTE Networks (AMEX:FTNW)
Historical Stock Chart
From Aug 2024 to Sep 2024
FTE Networks (AMEX:FTNW)
Historical Stock Chart
From Sep 2023 to Sep 2024