For Immediate Release
Look Communications Announces Signing of Term Sheet for
$208 Million Bank Credit Facility
Financing Earmarked to Fund Continued Growth and Nation-Wide Expansion of
Services
Toronto, Ontario, August 1, 2000 - Look Communications Inc. announced today
that it has entered into a term sheet for a revolving bank credit facility
with The Bank of Nova Scotia and Bank of Montreal worth $208.3 million CDN.
This financing will be underwritten by the banks and will be partially
guaranteed by Teleglobe and Telesystem. Closing of the final agreement is
subject to completion of required documentation and certain conditions
customary for a financing of this nature. Closing is expected to occur
within the next few weeks.
"This financing is great news for our company on two levels," says David
Parkes, President and CEO of Look Communications Inc. "First, it gives us
the funds we need to fuel our growth and nation-wide expansion, and second
it validates that our company continues to generate high levels of
confidence and interest among lenders and investors."
"Our financing program is on track with our plans," continues Mr. Parkes.
"We have developed a phased approach to financing our company that began
with an extension and increase of our existing facility to $98.3 million,
and continued with a $20 million short-term credit facility in June. In
addition to this $208 million credit facility we expect to continue with our
financing plan later this year with our return to the equity markets and/or
high yield debt markets. Once we complete the latter stages of the plan we
will have sufficient funds to support our growth for the next couple of
years."
The term of this credit facility is 364 days. This will enable Look to
refinance its existing debt, while bringing in new funds to finance the
company's growth and expansion across Canada.
"Look Communications has a very focussed business plan, including
development of our fixed wireless high speed Internet access network,
development of one of Canada's leading portals, continued growth of our
digital television distribution business, and installation of state of the
art customer service systems," says Mr. Parkes. "This financing will enable
Look to go forward with these initiatives, while positioning the company to
complete further long term financing plans."
About Look Communications Inc.
Look Communications Inc. (CDNX: LKC) is a leading wireless broadband
carrier, delivering a full spectrum of communications services including
digital television distribution, high speed Internet access and Web-related
services. Through its advanced MDS technology (Multipoint Distribution
System), Look provides superior, digital entertainment services to homes
across Quebec and Ontario. Look's Internet service, formerly known as
Internet Direct, is available throughout Canada and has established itself
as one of Canada's largest independent service providers offering both high
speed and dial-up Internet access, in addition to other Web-based
applications.
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Look Communications is a Canadian company whose principal shareholders are
Telesystem Ltd., Teleglobe Inc., Covington Wireless Communications (Ontario)
Ltd. and GTC Transcontinental Group Ltd. The company is listed on the
Canadian Venture Exchange under the symbol LKC.
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The corporate information contained in this release contains forward-looking
statements regarding future events and the future performance of Look that
involve risks and uncertainties that could cause actual results to differ
materially. Assumptions used in the preparation of such information,
although considered reasonable by Look at the time of preparation, may prove
to be incorrect. The actual results achieved will vary from the information
provided herein and the variations may be material. Consequently, there is
no representation by Look that actual results achieved will be the same in
whole or in part as those forecast.
The Canadian Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
For media information, please contact: For Investor Relations:
Deborah Wilson Gordie Campbell
DBA Communications Look Communications
Inc.
(416) 591-7783 ext. 103 1-888-439-2897
wilson@dbapr.com
gcampbell@team.look.ca |
