Mobileum Takes Strategic Actions to Strengthen Balance Sheet and Position Business for Sustainable Long-Term Growth
July 23 2024 - 3:09PM
Business Wire
Enters into Restructuring Support Agreement to
eliminate $529 million of prepetition debt
Files voluntary petitions for pre-packaged
chapter 11 cases to implement restructuring transactions
Global operations expected to continue without
interruption during chapter 11 cases
Mobileum Inc. and certain of its U.S.-based affiliates
(collectively, “Mobileum” or the “Company”), a leading global
provider of analytics and network solutions, today announced that
it has entered into a Restructuring Support Agreement (“RSA”) and
filed voluntary petitions for consensual pre-packaged chapter 11
cases in the U.S. Bankruptcy Court for the Southern District of
Texas (“the Court”) to complete the restructuring contemplated by
the RSA. The financial restructuring, which has the full support of
its key financial partners, will strengthen Mobileum’s financial
foundation, significantly deleverage its capital structure, and
provide the Company with $60 million of new money through a
DIP-to-exit facility, enabling it to advance its ongoing strategic
initiatives and continue to serve its global customers at the
highest levels.
“Today’s announcement is an important step forward that will
position Mobileum to continue as a leading provider for the telecom
industry for the long-term,” said Mike Salfity, Chief Executive
Officer of Mobileum. “With a strengthened balance sheet and the
committed support of our financial partners, Mobileum will be
equipped with the financial flexibility to build for the future and
continue driving value for our customers through our suite of
category-defining analytics solutions. Importantly, we expect
complete continuity during this process, and for our customers to
maintain uninterrupted access to Mobileum’s mission critical
products and services.”
The Restructuring Support Agreement has been agreed to by
approximately 88% of the Company’s first lien lenders, the
Company’s first lien noteholder, and 77% of the Company’s second
lien lenders, as well as affiliates of H.I.G. Capital owning a
majority of the Company’s equity. Through the RSA and related
restructuring transactions, Mobileum is expected to eliminate $529
million of prepetition debt and substantially reduce its interest
expense burden, positioning the Company for sustainable, long-term
growth and allowing Mobileum to continue to capitalize on long-term
5G and IoT tailwinds. Mobileum expects to swiftly complete its
financial restructuring and emerge from chapter 11 within 60
days.
Additional Information About the Financial
Restructuring
Global operations are expected to continue without interruption
during the chapter 11 cases, including complete continuity of all
telecommunications products and services. Today’s filings did not
include any of Mobileum’s non-U.S. subsidiaries, and the Company’s
international operations are not part of the court-supervised
restructuring process. Additionally, the RSA contemplates that
trade vendors and suppliers will be paid in full under normal terms
for goods and services provided on or after the filing date.
To fund operations without disruption during the chapter 11
cases, Mobileum has secured $60 million of debtor-in-possession
(“DIP”) financing from an ad hoc group of the Company’s first lien
lenders. A subset of the Company’s consenting first lien lenders
have also agreed to backstop the full amount of the DIP. Following
Court approval, the Company expects this financing to provide the
necessary liquidity to continue operations in the ordinary course
during the chapter 11 process.
Additional information regarding Mobileum’s chapter 11 process
is available at https://cases.ra.kroll.com/Mobileum. Stakeholders
with questions may call the Company’s Claims Agent, Kroll
Restructuring Administration, at 844-712-2239 or 646-777-2539 if
calling from outside the U.S. or Canada, or email at
MobileumIssuerServices@is.kroll.com.
Advisors
Weil, Gotshal & Manges LLP is serving as legal counsel,
Evercore is serving as investment banker, FTI Consulting is serving
as financial advisor, and C Street Advisory Group is serving as
strategic communications advisor.
About Mobileum
Mobileum is a leading provider of Telecom analytics solutions
for roaming, core network, security, risk management, domestic and
international connectivity testing, and customer intelligence.
Mobileum serves a global flagship customer base, who rely on its
solutions to connect deep network and operational intelligence with
real-time actions that increase revenue, improve customer
experience, and reduce costs. Headquartered in Silicon Valley,
Mobileum has global offices in countries including Germany, Greece,
India, Japan, Portugal, Singapore, and United Arab Emirates.
Learn more at https://www.mobileum.com/.
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