Starry Amends Lender Agreement to Extend Financing as Company Explores Strategic and Balance Sheet Alternatives
December 19 2022 - 4:30PM
Business Wire
Interim financing will enable the company additional time to
execute on capital raising and other strategic balance sheet
solutions.
Starry Group Holdings, Inc. (NYSE: STRY) (the “Company” or
“Starry”), a licensed fixed wireless technology developer and
internet service provider, today announced that on December 13,
2022 it entered into a ninth amendment (the “Ninth Amendment”) to
the Amended and Restated Credit Agreement with its lenders. The
Ninth Amendment provides for interim loan financing of more than
$11 million with the ability to access additional financing through
an uncommitted accordion debt basket of additional loans of up to
$30 million.
On October 31, 2022, Starry announced that it had hired PJT
Partners to advise the Company and its Board of Directors on
mergers and acquisitions, capital raising, and balance sheet
solutions. That process remains ongoing.
“The macroeconomic environment continues to present challenges
for companies seeking to raise additional capital, but we continue
to remain confident in our business and our ability to find the
best path forward for our business,” said Chet Kanojia, Starry
co-Founder and Chief Executive Officer. “We’re grateful to our
lenders for the extension of interim financing as we chart the next
path for the company.”
“It’s important to remember: broadband access is essential for
every household to thrive. The lack of competition in this market
means there’s a lot of room to grow, as the demand for
high-quality, and importantly, affordable broadband access
increases,” said Kanojia.
About Starry Group Holdings, Inc.
At Starry (NYSE: STRY), we believe the future is built on
connectivity and that connecting people and communities to
high-speed, broadband internet should be simple and affordable.
Using our innovative, wideband hybrid-fiber fixed wireless
technology, Starry is deploying gigabit capable broadband to the
home without bundles, data caps, or long-term contracts. Starry is
a different kind of internet service provider. We’re building a
platform for the future by putting our customers first, protecting
their privacy, ensuring access to an open and neutral net, and
making affordable connectivity and digital equity a priority.
Headquartered in Boston, Starry is currently available in Boston,
New York City, Los Angeles, Washington, DC, Denver and Columbus,
OH. To learn more about Starry or to join our team and help us
build a better internet, visit: https://starry.com.
Forward-Looking Statements
This press release includes statements that may constitute
“forward-looking statements” within the meaning of the “safe
harbor” provisions of the Private Securities Litigation Reform Act
of 1995. These statements include, but are not limited to, express
or implied forward-looking statements relating to our expectations
regarding our strategy, competitive position and opportunities in
the marketplace and our anticipated business and financial
performance. These statements are neither promises nor guarantees,
but are subject to a variety of risks and uncertainties, many of
which are beyond our control, which could cause actual results to
differ materially from those contemplated in these forward-looking
statements. Existing and prospective investors are cautioned not to
place undue reliance on these forward-looking statements, which
speak only as of the date hereof. Factors that could cause actual
results to differ materially from those expressed or implied
include our ability to regain compliance with the continued listing
standards of the NYSE, our limited remaining available cash, our
ability to remain in compliance with and not in default under our
credit facility, our potential inability to timely procure
additional financing or other strategic options on favorable terms,
or at all, our potential inability to realize the expected benefits
of the announced reduction in force and other cost-cutting measures
and the risks and uncertainties described in the “Risk Factors”
section of our Annual Report on Form 10-K and other filings with
the SEC. We undertake no obligation to update or revise any
forward-looking statements, whether as a result of new information,
future developments or otherwise, except as may be required under
applicable securities laws.
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version on businesswire.com: https://www.businesswire.com/news/home/20221219005774/en/
Investors: Ben Barrett, Starry bbarrett@starry.com
investors@starry.com
Media: Mimi Ryals, Starry mryals@starry.com
press@starry.com
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