SmarTalk TeleServices, Inc. announced Tuesday that it has reached an agreement with Fletcher International Limited for a $25 million secured term loan facility, maturing January 31, 1999. The Company expects to access up to $10 million of the facility over the next month, subject to the satisfaction of customary conditions to draw down. The Company could access up to an additional $15 million from the facility over various periods, subject to the discretion of the lender. SmarTalk plans to use the financing for general corporate purposes.
An affiliate of Fletcher Asset Management currently is a shareholder of SmarTalk. In connection with the financing transaction, SmarTalk has granted Fletcher the right to acquire, upon satisfaction of applicable notice periods, up to approximately an additional 15% of the common stock of SmarTalk.
SmarTalk TeleServices, Inc. is a leading provider of prepaid calling cards and prepaid wireless services. Based in Dublin, Ohio, SmarTalk maintains distribution agreements with the U.S. Postal Service and leading mass merchandisers, consumer electronics retailers, supermarkets, hotels, home office superstores and convenience stores throughout North America and the U.K. SmarTalk also creates promotional card programs for advertisers and corporate clients. Visit the SmarTalk website at [www.smartalk.com].