GLENTEL Inc. Announces Proposed Offering of $200 Million Senior Unsecured Notes

BURNABY, BC, Aug. 27, 2014 /CNW/ - GLENTEL Inc. (TSX: GLN) announced today its intention, subject to market and other conditions, to launch a $200 million aggregate principal amount offering of senior unsecured notes (the "Notes") due in 2019.

The Notes will be offered in all provinces of Canada, and in the United States, by a syndicate of underwriters led by BMO Nesbitt Burns Inc. and CIBC World Markets Inc. as joint book-running managers, and including Scotia Capital Inc. and Canaccord Genuity Corp. as co-managers, by way of a private placement under applicable securities laws.

The Company intends to use the net proceeds of the Notes to repay borrowings under its senior secured credit facilities, and for general corporate purposes. In addition, effective upon the closing of the Notes, the Company will amend its senior secured credit facilities to, among other things, permit the offering of the Notes and reduce the total available committed amount of the facilities from $129.3 million to $50.0 million. These amendments are conditional upon the closing of the Notes.

The Notes will not be qualified for distribution to the public under the securities laws of any province or territory of Canada and may not be offered or sold in Canada, directly or indirectly, other than pursuant to applicable private placement exemptions. The Notes have not and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of such Act. This press release shall not constitute an offer to sell or a solicitation of an offer to buy the Notes in any jurisdiction.

About GLENTEL

Based in Burnaby, BC, Canada, GLENTEL (TSX: GLN) is a leading provider of innovative and reliable wireless communications services and solutions, offering a choice of network carrier and wireless or mobile products and services to consumers and commercial customers. GLENTEL is one of the largest independent multicarrier mobile phone retailers in Canada and Australia. In the United States, GLENTEL operates two of the six National Premium Retailers for Verizon Wireless. To its business and government customers, GLENTEL offers wireless systems and hardware, rental equipment, and system implementation services.  GLENTEL celebrated its 50th anniversary in 2013.

GLENTEL's own brands, including GLENTEL Wireless Solutions, WIRELESSWAVE, WAVE SANS FIL, Tbooth wireless, la cabine T sans fil, WIRELESS etc…, SANS FIL etc…, MacStation, Diamond Wireless, Wireless Zone®, and Allphones span four countries and three continents. At June 30, 2014, the Company employed over 4,700 employees and operated more than 1,420 locations, including more than 495 locations in Canada, located in retail malls, Costco Wholesale stores, Target retail stores, and business centres; more than 735 corporate, franchise, and BJ's Wholesale Inc. kiosk retail locations in the United States; and more than 190 retail locations in Australia and the Philippines.

Cautionary Statement Regarding Forward-Looking Information

This news release contains statements about financial and operating performance of GLENTEL and future events that are forward looking. By their nature, forward-looking statements require GLENTEL to make assumptions and predictions and are subject to inherent risks and uncertainties. There is significant risk that the forward-looking statements will not prove to be accurate. Readers are cautioned not to place undue reliance on forward-looking statements as a number of factors could cause actual future performance and events to differ materially from those expressed in the forward-looking statements. Specifically, this news release includes forward-looking statements regarding, among other things, the announcement of the proposed offering of the Notes, the amendment of, and reduction of the commitments under our senior secured credit facilities, and the use of net proceeds from the Notes. Accordingly, this news release is subject to the disclaimer and qualified by the qualifications and risk factors referred to in GLENTEL's 2013 Annual Information Form, in the 2013 annual report, and any assumptions, qualifications and risk factors contained in other GLENTEL public disclosure documents and filings with securities commissions in Canada (on SEDAR at http://www.sedar.com). Except as required by law, GLENTEL disclaims any intention or obligation to update or revise forward-looking statements, and reserves the right to change, at any time at its sole discretion, its current practice of updating annual targets and guidance.

NO STOCK EXCHANGE, SECURITIES COMMISSION, OR OTHER REGULATORY AUTHORITY HAS APPROVED OR DISAPPROVED THE INFORMATION CONTAINED HEREIN.

For a copy of GLENTEL's annual report or for additional information visit http://www.glentel.com or http://www.sedar.com.

SOURCE: Glentel Inc.