Mobilicity inks $75 million financing deal

Mobilicity – legally called Data & Audio-Visual Enterprises Wireless Inc. – has announced an injection of $75 million into their business. It’s rumoured that Mobilicity has over 250,000 wireless subscribers, but since they’re a private company they don’t need to declare their numbers. The press release stated “this additional financing significantly enhances Mobilicity’s financial strength and is an important step to the achievement of Mobilicity’s strategic goals going forward.” Here’s how the financing will look:

“This new financing will be available to Mobilicity in two stages. The first stage consists of a $35 million facility provided by certain lenders (the “Lenders”) and the second stage will consist of a $75 million follow-on facility that will be backstopped by the Lenders. The first stage will be available in three draws, with each draw becoming available upon satisfaction of certain conditions precedent. At this time, the first draw of $15 million has been completed.”

Perhaps there’ll be no new-entrant merger this year. Hopefully some of the cash will be put towards expanding and strengthening their current coverage area, plus bidding on licences for the upcoming 700mHz wireless auction.

Source: CNW