Global Light Announces that Barclays Capital is to Lead Senior Debt Financing For New World Network
VANCOUVER and NEW YORK, April 18 /PRNewswire/ -- Global Light Telecommunications Inc. (Amex: GBT - news) and Barclays Capital, the investment banking division of Barclays PLC, are pleased to report that Barclays Capital will lead the senior debt financing for the ARCOS-1 (Americas Region Caribbean Ring System) submarine cable system.
Barclays Capital has provided a senior debt financing commitment of US$335 million. This financing will be provided through New World Network Holdings, Ltd. (``New World'), the holder of an approximate 85% interest in ARCOS-1. The senior debt will be non-recourse to the shareholders of New World. Funding of the transaction is expected to occur in June 2000. In addition, Barclays Capital has been retained by New World as financial advisor for the purposes of this transaction.
In February 2000, Global Light Telecommunications Inc. agreed to purchase a 51% interest and Siemens Project Ventures, an investment arm of Siemens AG, agreed to purchase a 20.4% interest in New World. The remaining equity is held by the founders of New World.
In addition, the ARCOS-1 consortium has signed a turnkey contract with Norddeutsche Seekabelwerke (NSW), Siemens, and Tyco Submarine Systems (TSSL) to build ARCOS-1.
About New World and ARCOS-1
New World will be a telecommunications carrier's carrier. It owns approximately 85% of ARCOS-1, which is designed to be a state-of-the-art submarine broadband fiber optic network. ARCOS-1 will connect the U.S. to Mexico, Central America, South America and the Caribbean. New World's partners in ARCOS-1 are approximately 30 carriers throughout the region including GTE, MCI Worldcom, AT&T and Cable & Wireless. This unique ownership structure combines the advantages of an independently owned company and the benefits of strategic partnerships with local carriers that provide landing rights, backhaul and interconnection to local networks.
The ARCOS-1 system will provide broadband connectivity between the U.S. and countries having a combined population of approximately 200 million. ARCOS-1, designed as a true ring configuration, will provide protection in the form of built-in redundancy, which is critical for most broadband applications. The system will be deployed at an initial capacity of 15 Gbps, and will be scaleable to 960 Gbps. The ARCOS-1 network will be comprised of 24 undersea cable segments with a total length of approximately 8,600 km. Of the 24 cable segments, 22 segments are unrepeatered, allowing for relatively large upgrades of system capacity at a fraction of the initial investment. This scaleability is achievable through implementation of new land-based transmission technologies as they become available.
SOURCE: Barclays Capital and Global Light Telecommunications Inc. |
