MONTREAL-SR Telecom Inc. said it is revising its estimates for consolidated revenues for the fourth quarter to between $22 million and $25 million due to delays in receiving major purchase orders under existing frame agreements.
In addition, the company said it will not achieve break even for its core wireless business, and it will generate a significant loss.
The company announced it has entered a nonbinding letter of intent for a five-year revolving senior secured credit facility for up to $50 million from a U.S. lender.
Completion of the facility is subject to several conditions, including due diligence and concurrent issuance of equity or subordinated debt for at least $30 million. The credit facility is part of a broader refinancing package that the company said it will elaborate on in the coming weeks.
In other news, SR Telecom announced it received purchase orders from a Latin American operator under a previously announced frame contract. The orders, valued at about $8 million, include the company’s SR500 line of fixed wireless access systems.
The company also announced add-on orders valued at about $810,000 from Indonesia’s PT Aplikanusa Lintasarta for its Airstar wireless broadband solution.
