Newsroom
Stratos Seeks Interim Adjustments to Financial Covenants and Anticipates Improvement
BETHESDA, MD (January 31, 2007) Stratos Global Corp. (TSX: SGB), the leading provider of advanced mobile and fixed-site remote communications solutions, today announced that it will seek temporary adjustments for 2007 to certain of the financial covenants under its senior credit facilities. The proposed adjustments are designed to address restrictions that become more progressive at the end of the first quarter of 2007 under the current terms of its senior credit facilities. The proposed adjustments, which must be approved by a majority vote (based on outstanding commitments) of the existing lenders under the Corporation's senior credit facilities, will provide the Corporation with additional flexibility while it completes the integration of Xantic B.V.
The Corporation also announced that it expects fourth-quarter results to reflect modest growth in revenue compared to the third quarter and continued strong improvement in segment earnings* compared with adjusted segment earnings of $18.7 million reported in the third quarter.
The Corporation will report fourth-quarter and full-year 2006 results on Thursday, February 15, 2007, following the close of the Toronto Stock Exchange. Jim Parm, president and chief executive officer, and Al Giammarino, executive vice president and chief financial officer, will conduct a conference call with analysts to discuss these results at 8:30 a.m. EST, Friday, February 16, 2007.
To access the conference call, please dial 1-800-733-7571. A live audio webcast of the call will be available at: http://www.newswire.ca/en/webcast/viewEvent.cgi?eventID=1713580. A replay of the conference call also will be available through Friday, February 23. To access the replay, please call 1-877-289-8525 and use access code 21217057 followed by the number sign.
About Stratos
Stratos is the world's trusted leader for vital communications. Stratos offers the most powerful and extensive portfolio of remote communications solutions including mobile and fixed satellite and microwave services. More than 20,000 customers use Stratos products and industry-leading value-added services to optimize communications performance. Stratos serves U.S. and international government, military, first responder, NGO, oil and gas, industrial, maritime, aeronautical, enterprise, and media users on seven continents and across the world's oceans. Stratos is a wholly-owned subsidiary of Inmarsat plc. For more information, visit www.stratosglobal.com.
Caution Concerning Forward-Looking Statements
This document contains statements and information about potential future circumstances and developments. Such statements and information are qualified by the inherent risks and uncertainties surrounding future expectations generally and may differ materially from Stratos Global Corporation's actual future results. The Arrangement with CIP Canada Investment Inc. was subject to a number of closing conditions, including court, shareholder, and regulatory approvals. The court and shareholder approvals have been obtained but certain regulatory approvals remain and accordingly there is a risk that this condition will not be satisfied and the Arrangement will not close. For additional information with respect to these risks and uncertainties, reference should be made to the Corporation's continuous disclosure materials filed with Canadian securities regulatory authorities, including the risk factors described in our annual information form, the management proxy circular dated May 4, 2007 in connection with the Arrangement, and the Corporation's annual report filed with the U.S. Securities and Exchange Commission on Form 40-F. Stratos Global Corporation disclaims any intention or obligation to update or revise any forward-looking statements or information, whether as a result of new information, future events, or otherwise.
* Segment earnings is defined by the Corporation as earnings before interest expense, depreciation and amortization, other costs (income), non-controlling interest, equity in earnings of investee, and income taxes.
For additional information :
Paula McDonald, FCA
Executive Vice President and Chief Financial Officer
709.724.5227
paula.mcdonald@stratosglobal.com