Chadmoore Wireless Group Consummates Debt Facility With GATX Capital
The company plans to use these funds primarily to purchase infrastructure equipment and for working capital to continue to build and operate its commercial Specialized Mobile Radio dispatch network in over 100 markets in the United States. Terms include interest at a fixed rate at the time of the funding based on five-year treasury notes and warrants to purchase shares of Chadmoore's common stock.
Robert Moore, Chadmoore's CEO, stated, "We are pleased that we were able to consummate a funding of this size without incurring significant shareholder dilution. With this GATX Capital debt facility in place, we can now focus on completing our system rollout to enable us to meet increasing consumer needs for cost-effective, 2-way radio service. GATX Capital's confidence in Chadmoore reflects our experience that positive cash flows at the market level continue to increase, with markets quickly becoming cash positive once systems are built and operational."
GATX Capital is a diversified global financial-services company that provides financing for transportation, industrial, and information technology assets. It owns or manages assets with an original equipment cost of approximately $10 billion. GATX Capital is a subsidiary of GATX Corporation (NYSE: GMT), which provides and finances service-enhanced assets primarily used to help its customers transport, store or distribute their products and information.
Chadmoore Wireless Group is a national leader in providing Specialized Mobile Radio communications with approximately 4,800 FCC licenses in 169 U.S. markets. Chadmoore provides Teamlink service, a high quality, reliable and cost-effective wireless 2-way radio alternative (commonly known as radio dispatch) for cost-conscious businesses across the United States. This service is used by millions of business and government customers, including taxi fleets, delivery services, ambulances, and contractors. Chadmoore provides effective, affordable, dependable one-to-one and one-to-many communications.