SARASOTA, Fla.—Pinnacle Holdings Inc. closed on the sale of two of its colocation properties located in the central business district of St. Louis, Mo., generating $22 million that will primarily be used to repay bank debt, including payment of the company’s fourth quarter scheduled amortization payment, as well as to establish a $2.5 million cash collateral account to secure outstanding letters of credit, the company said.
Pinnacle said it is in discussions with interested parties relative to the sale of its other colocation properties located in San Antonio, Harlingen and Beaumont, Texas.
Pinnacle also announced it has entered into a forbearance agreement with the lenders under its senior credit facility as a result of Pinnacle’s non-compliance with certain related covenants.
The forbearance agreement runs through Dec. 12, during which time the lenders agree not to exercise remedies available to them as a result of Pinnacle’s non-compliance. In addition, the forbearance agreement eliminates Pinnacle’s ability to make additional draws under the senior credit facility; increases the interest rate on outstanding borrowings under the facility by 1 percent; allows Pinnacle to sell its St. Louis colocation facilities discussed above; restricts the amount of money that can be invested in capital expenditures by Pinnacle; and limits Pinnacle’s ability to incur additional debt.
