Xecom Corp. Announces $30 Million Refinance
RANCHO MIRAGE, Calif., Aug. 25 /PRNewswire/ -- Xecom Corporation (Xecom) (OTC BULLETIN BOARD OTC Bulletin Board
An electronic quotation listing of the bid and asked prices of OTC stocks that do not meet the requirements to be listed on the NASDAQ stock-listing system. : XECM) announced today that its wholly owned subsidiary Wholly Owned Subsidiary
A subsidiary whose parent company owns 100% of its common stock.
In other words, the parent company owns the company outright and there are no minority owners. "Select Switch Systems, Inc. (SSI (1) See server-side include and single-system image.
(2) (Small-Scale Integration) Less than 100 transistors on a chip. See MSI, LSI, VLSI and ULSI.
1. (electronics) SSI - small scale integration.
2. )" has completed the total refinancing of its long term AAFES Military subcontract in the form of an expandable capital lease facility totaling more than $30,000,000.
The new financing package was obtained through First Continental Capital Corporation of Dallas, Texas acting as Trustor for First Security Bank, National Association of Salt Lake City, Utah For ships of the United States Navy of the same name, see .
Salt Lake City is the capital and the most populous city of the U.S. state of Utah. The name of the city is often shortened to Salt Lake, or its initials, S.L.C. , Trustee for the owner/lender.
Terms of the financing, which has been utilized to eliminate all prior long term financing and construction advances from Fujitsu Business Communication Systems (FBCS FBCS Fellow of the British Computer Society
FBCS Fujitsu Business Communication Systems
FBCS Fixed Base Crew Station ) and Sprint Corporation L.P., include a 74 month payment period; a substantially lower effective interest rate; and a total payment deferral of over 10 months.
The financing is also expandable to accommodate construction at new bases and for additions to existing base installations, pending the approval of Sprint Corporation under amendment provisions of the existing SSI military subcontract.
Joseph C. Vigliarolo, Xecom CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , stated that "the new financing package culminates a full year of effort to restructure provisions of the initial SSI subcontract, and to bring the payments for prior Base Construction in line with anticipated growth of revenues from an expanding base of military customers."
Mr. Vigliarolo credited the completion of the financing, primarily to the efforts of Dennis Casey who has operated in a Chief Executive capacity for SSI since September 4, 1996. He said, "Mr. Casey's primary focus has been on subcontract restructure, margin improvement, and refinancing, including various guarantees and payment deferrals."
Mr. Casey's Telecommunication experience includes seven years as Vice President of Marketing for GTE GTE General Telephone & Electronics
GTE Génie Thermique et Énergie (French)
GTE Gas Turbine Engine
GTE Global Tropospheric Experiment
GTE Geothermal Energy
GTE Gas Turbine Efficiency plc (Sweden & USA) Corporation's Telephone Operations with annual revenues exceeding $10 billion. He also previously raised over $100,000,000 in various equity and debt financing for two telecommunications companies which he founded.
Mr. Vigliarolo added that, "under a new three year contract with Xecom, Mr. Casey will direct and focus SSI's efforts as follows:
1) Revenue expansion at existing and new bases, under the ten year AAFES
2) Launching a (9-15-97) new "FaMilitary" Program directed toward families of military personnel wherein family-related, long distance calls (collect and/or credit card) calls may be initiated by a soldier, but billed to pre-approved family members.
3) Directing SSI's entry and expansion in the CLEC (Competitive Local Exchange Carrier) An organization offering local telephone service that is not one of the traditional telephone companies. The Telecommunications Act of 1996 allowed competition to the incumbent telcos (ILECs), enabling new companies (CLECs) market where the company will immediately file for "facilities based" CLEC status, permitting it to participate in the sharing of Originating and Terminating Access Fees as paid by long distance carriers for current long distance traffic generated by Military Personnel participating in the AAFES program.
4) Selecting and prioritizing CLEC end office construction and Internet opportunities including the potential partnering with various Telecommunication Organizations and/or Switch Manufacturers.
5) Initiating large scale reductions in local trunking costs by rerouting existing traffic over the Sprint Network and by converting existing local trunk terminations to long distance access trunks for Dial Around (1-800) traffic coincident with the achievement of CLEC status.
Mr. Vigliarolo closed stating that "the company has become current on all accounts payable; continues to maintain a positive cash flow; and expects to achieve operating profitability prior to the end of the 10 month payment- deferral period." He added that, "substantial Engineering and Construction has already been completed at Ft. Knox, Ft. McPherson, and Redstone Arsenal which are part of a twelve-base expansion forecast over an 18 month period."
Xecom Corp., through its wholly owned subsidiary, Select Switch Systems, Inc., installs, maintains and operates turnkey residential barracks telecommunications services through a 10-year exclusive subcontract agreement with Sprint Corporation L.P., to the nation's Army and Air Force installations.
Certain statements in this press release may include forward-looking comments regarding among other things, availability of funding, technical and business progress. The Company's actual results may vary materially from those forward-looking statements due to risks and uncertainties to which the Company is subject such as delays in installations, failure to meet milestones or other obligations under collaborative agreements and other risks, which are described in the Company's Form 10.
SOURCE Xecom Corporation
/CONTACT: Financial Internet Group, 760-770-7133 or Toll Free: 888-770-7133/
CO: Xecom Corporation ST: California IN: TLS (1) (Transport Layer Security) A security protocol from the IETF that is based on the Secure Sockets Layer (SSL) 3.0 protocol developed by Netscape. TLS uses digital certificates to authenticate the user as well as authenticate the network (in a wireless SU: FNC
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