TGNT -- Teligent Secures Commitment for $250 Million in First Phase of New Financing Program
December 08, 2000 13:30
Teligent Secures Commitment for $250 Million in First Phase of New Financing Program
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VIENNA, Va.--(BUSINESS WIRE)--Dec. 8, 2000--Teligent, a global leader in broadband communications, today announced that it has secured a commitment for $250 million in a definitive agreement with a fund managed by Rose Glen Capital Management, L.P., completing the first phase of a new financing program.
The equity financing arrangement covers the purchase of up to $250 million of Teligent's common stock, at Teligent's option, over a period of 18 months. The new capital will finance operations and construction of its fixed wireless and fiber optic voice and data networks.
"This new capital represents a strong endorsement of Teligent and our enhanced 'on-net' strategy to increase market share across our 43 operational markets," said Teligent Chairman and Chief Executive Officer Alex J. Mandl. "This gives us a solid foundation for our continued deployment of high-quality, broadband networks across the country," Mandl said.
The financing reflected in today's announcement is expected to extend Teligent's funding through 2001. As part of the second phase of its new financing program, Teligent continues to negotiate with equity investors, banking institutions and vendors to secure additional capital to fund the company's operations, Mandl said.
"These negotiations are continuing, and while we cannot guarantee their success, we are pleased with the progress that has been made so far," Mandl said.
The agreement permits Teligent, at its option, to privately place common stock with the firm for up to $250 million. The investor may resell these shares in the open market pursuant to a registration statement to be filed by Teligent with the Securities and Exchange Commission.
Teligent will also issue warrants to the investor for shares representing 6 percent of the commitment amount, at a 20 percent premium to an average market price at signing.
Under this equity arrangement, shares may be sold to the investor, at Teligent's discretion, at a 5 percent discount to the volume-weighted average share price over a pricing period. The total number of shares issued is dependent, in part, on Teligent's stock price, subject to a price floor, with Teligent controlling the amount, timing, and minimum price of each sale of stock.
The new financing has been approved by Teligent's Board of Directors and may, in part, be subject to the approval of shareholders. There will be no change in the composition of the Board of Directors as a result of this investment. No fees were paid to any intermediary in connection with this financing.
About Teligent
Teligent's local communications networks represent the integration of the latest advances in high-frequency microwave technology with traditional broadband wireline equipment. Together these technologies enable Teligent to increase its local network efficiency and significantly lower network costs.
Teligent delivers fixed wireless services by installing small antennas on the roofs of customer buildings. When a customer makes a telephone call or accesses the Internet, the voice, data or video signals travel over the building's internal wiring to the rooftop antenna.
These signals are then digitized and transmitted to a "base station" antenna on another building, usually less than three miles away.
Each base station antenna gathers signals from a cluster of surrounding customer buildings, aggregates the signals and then routes them to a broadband switching center. At the switching center, ATM (Asynchronous Transfer Mode) switches and data routers distribute the traffic to other networks, such as public circuit-switched voice networks, packet-switched Internet and private data networks.
Based in Vienna, Virginia, Teligent, Inc. (NASDAQ:TGNT) is a global leader in broadband communications offering business customers local, long distance, high-speed data and dedicated Internet services over its digital SmartWave(TM) local networks in major markets throughout the United States.
The company is working with international partners to extend its reach into Europe, Asia and Latin America. Teligent's offerings of regulated services are subject to all applicable regulatory and tariff approvals.
About Rose Glen
Rose Glen Capital Management, L.P., based in Bala Cynwyd, Pennsylvania, manages investment funds dedicated to providing capital to public companies.
For more information, visit the Teligent website at: www.teligent.com.
Teligent and SmartWave are the exclusive trademarks of Teligent, Inc.
Statements made in this press release are forward-looking and are made pursuant to the safe harbor provisions of the Securities Reform Act of 1995. These forward-looking statements reflect the company's current views regarding future events and involve risks and uncertainties that could affect the company's growth, operations, markets, products and services.
The company cannot be sure that any of its expectations will be realized.
Factors that may cause actual results, performance or achievement to differ materially from those contemplated by its forward looking statements include without limitation: (1) the company's ability to secure additional funding and meet objectives contained in the company's financial instruments; (2) the company's pace of entry into new markets and the time and expense required to build the company's planned network infrastructure; (3) changes in telecommunications laws and regulations; (4) general economic, competitive, and financial market conditions; (5) technological developments, and (6) other factors discussed in the company's filings with the Securities and Exchange Commission.
CONTACT: Teligent, Vienna
Media and Investors
Mike Kraft, 703/762-5359
Pager: 877/665-7016
mike.kraft@teligent.com
or
Investors
Kerry Watterson, 703/762-5458
Pager: 877/828-0687
kerry.watterson@teligent.com |
