EXHIBIT 99.1
FOR IMMEDIATE RELEASE
Page 1 of 2
COMPANY CONTACTS:
Xxx Xxxxxxx, Vice President & Chief Financial Officer
(000) 000-0000
P-COM CLOSES AGREEMENT FOR $43 MILLION OF NEW EQUITY AND REFINANCES ITS BANK
LINE OF CREDIT
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CAMPBELL, CA - January 13, 2000- P-Com, Inc. (Nasdaq National Market:
PCMS) announced today that it sold 7,530,642 shares of newly issued common stock
to institutional investors for an aggregate of $43.0 million. The Company
priced the unregistered shares at a 15% discount to the 60-day average of its
closing sale prices for the period ended January 5, 2000, the day before the
purchase agreement was signed and the Board of Directors approved the
transaction. The sale closed today.
Xxxxxxx Capital, L.P. and J. & X. Xxxxxxxx & Co. Incorporated were the
lead investors, acquiring 5,253,940 shares of Common Stock for $30.0 million.
Investors advised by Wellington Management Company, LLP, Xxxxxx McBaine
Investment Advisors and Xxxxx Capital Partners, L.P. invested $5.0 million, $5.0
million, and $3.0 million, respectively.
The Company also announced that the repayment in full of its line of credit
with Union Bank of California, N.A. and Bank of America NT & SA, amounting to
approximately $27 million, by utilizing part of the equity proceeds and entering
into a new loan agreement with Greyrock Capital for $12 million.
"These transactions are key steps in our program to strengthen the balance
sheet and provide needed working capital. The initial successful deployment of
our new point-to-multipoint product to several customers is very encouraging and
these actions will allow the Company to aggressively follow-up these successes,"
said Xxxxxx Xxxxxxx, Chairman and CEO, P-Com, Inc. "We are particularly pleased
with the investor group and their in-depth knowledge of the telecommunications
industry."
P-Com, Inc. develops, manufactures, and markets network access systems for
the worldwide wireless telecommunications market. The point-to-point, spread
spectrum, and
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P-COM, INC. CLOSES AGREEMENT FOR $43 MILLION
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point-to-multipoint radio links provided by P-Com are designed to satisfy the
network requirements of cellular and personal communications services, corporate
communications, public utilities and local governments. In addition, P-Com
provides comprehensive network services including system planning, program
planning and management, path design, and installation.
Statements in this release that are forward looking involve known and
unknown risks and uncertainties, which may cause P-Com's actual results in
future periods to be materially different from any future performance that may
be suggested in this release. Such factors may include, but are not limited to,
fluctuations in customer demand and commitments, both in timing and volume,
introduction of new products, commercial acceptance and viability of new
products and expenses associated therewith, cancellations of orders without
penalties, pricing and competition, reliance upon subcontractors, P-Com's
ability to have available an appropriate amount of production capacity in a
timely manner, the ability of P-Com's customers to finance their purchases of P-
Com's products and/or services, the timing of new technology and product
introductions, the risk of early obsolescence, and the pending stockholder class
action lawsuit. Further, P-Com operates in an industry sector where securities
values are highly volatile and may be influenced by economic and other factors
beyond P-Com's control, such as announcements by competitors and service
providers. Reference is made to the discussion of risk factors detailed in P-
Com's filings with the Securities and Exchange Commission, including its reports
on Form 10-K and 10-Q.
P-Com, Inc. has its world headquarters in Campbell, California, USA and
offices in Florida, New Jersey, Virginia, the UK, Italy, France, Germany, China,
and Singapore. P-Com is an ISO 9001 certified company. For additional
information, contact P-Com at:
P-Com, Inc. . 0000 X. Xxxxxxxxxx Xxxxxxxxx . Xxxxxxxx, XX 00000 . USA
TEL: (000) 000-0000 . FAX: (000) 000-0000
xxx.x-xxx.xxx
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