UTStarcom Announces Additional Details of its Newly Announced Strategic Cooperation Agreement with China Merchants Bank
Jul. 1, 2010 (PR Newswire) --
BEIJING, July 1 /PRNewswire-Asia-FirstCall/ -- UTStarcom, Inc.
(Nasdaq: UTSI), today announced additional details of its strategic
cooperation agreement dated as of June 17, 2010 between UTStarcom and China
Merchants Bank (CMB). The Cooperation Agreement contemplates that CMB would
provide to UTStarcom and its affiliates financial services, including foreign
exchange services and financial consulting services, and a combination of
factoring, supply chain financing and other financing services based on the
assessment of the needs of different projects. The financial consulting
services would include advising on money policies, fiscal policies and capital
market policies as well as investment and financing structures. These
services would be provided without charge to UTStarcom. CMB would also work
with UTStarcom to design other types of financing solutions such as private
placements, trusts, debt instruments and mergers and acquisitions to meet the
needs of identified projects. Pursuant to the Cooperation Agreement and
subject to certain terms, UTStarcom has selected CMB to be the main
underwriter for any debt financing to be obtained for its projects.
The ability to tailor the financial product to fit the needs of specific
projects is an important aspect of the Cooperation Agreement and provides
UTStarcom with important flexibility in structuring its projects.
Provision of the services under the Cooperation Agreement, including the
previously announced credit line of at least RMB2 billion, will be subject to
satisfaction of conditions to be agreed, and are expected to include, for each
project or service, negotiation of separate definitive agreements, compliance
with applicable laws and regulations and satisfaction of CMB's credit and risk
management policies and approval procedures.
About UTStarcom, Inc.
UTStarcom is a global leader in IP-based, end-to-end networking solutions
and international service and support. The Company sells its solutions to
operators in both emerging and established telecommunications markets around
the world. UTStarcom enables its customers to rapidly deploy
revenue-generating access services using their existing infrastructure, while
providing a migration path to cost-efficient, end-to-end IP networks.
For more information please visit: http://www.utstar.com
This release includes forward-looking statements, including statements
regarding the Company's anticipated cooperation with China Merchants Bank
under the Cooperation Agreement, related credit line and other financing
arrangements. These statements are forward-looking in nature and subject to
risks and uncertainties that may cause actual results to differ materially.
These risks include the ability of the Company to successfully implement its
major projects, to enter into definitive agreements with respect to any
specific cooperation, project, credit line, loan or the like pursuant to the
Cooperation Agreement with China Merchants Bank, to satisfy any conditions
relating thereto and to otherwise realize the anticipated benefits of its
cooperation with China Merchants Bank, (the Company's ability to rapidly push
triple network convergence in China) as well as risk factors identified in its
latest Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current
Reports on Form 8-K, as filed with the Securities and Exchange Commission.
The Company is in a period of significant transition and the conduct of its
business is exposed to additional risks as a result. All forward-looking
statements included in this release are based upon information available to
the Company as of the date of this release, which may change, and we assume no
obligation to update any such forward-looking statement.
SOURCE UTStarcom, Inc.