Charys Closes New $5 Million Credit Facility

Wireless News
08-02-2005
Charys Closes New $5 Million Credit Facility

WIRELESS NEWS-August 2, 2005-Charys Closes New $5 Million Credit Facility (C)2005 10Meters - http://www.10meters.com

Charys Holding Company announced the successful closing of a new $5 million asset based credit facility with CAPCO Financial Company, a division of Palo Alto, California based Greater Bay Bank N. A., through its financial advisor and placement agent Kaufman Bros., L.P.
The completion of the credit facility restructures debt of its wholly owned subsidiary CCI Telecom, Inc. (CCI) acquired on March 4, 2005. The facility is secured by a first lien position on the assets of CCI. Additionally, Charys issued the lender a warrant to purchase up to 830,000 shares of Charys common stock over a seven-year period. The initial drawdown of the facility was approximately $2.6 million, of which $2.5 million, combined with a $300,000 unsecured note and the issuance of 500,000 shares of Charys series C Convertible Preferred Stock, was used to pay-off the existing line of credit, which as of the closing date had an outstanding balance of $4.55 million.

"The financial relationship that Charys has established with CAPCO will allow CCI to aggressively pursue its expansion plans by providing the needed working capital for operations," said Billy V. Ray, Jr., CEO of Charys Holding Company, Inc. "With this financing transaction completed along with the retirement of the existing debt at CCI, Charys is poised to continue with the implementation of its business strategy." According to Mike Novak, CEO of CCI Telecom, Inc., "The new CAPCO credit facility marks a significant milestone in Charys' efforts to provide the financial resources for CCI to execute our business plan."

Headquartered in Atlanta, Georgia, Charys focuses on the "Integrated Infrastructure Services Segment," which includes upgrading the underpinning, infrastructure, and back office operations of the telecommunication, cable, electric, and Internet industries serving consumers, businesses and government entities.

CCI is a telecommunications infrastructure services business.

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