Tuesday April 24, 11:37 am Eastern Time
Press Release
SOURCE: 360networks Inc.
360networks confirms compliance with all bank covenants
All figures in U.S. dollars
VANCOUVER, April 24 /PRNewswire/ - 360networks today confirmed it is in full compliance with all covenants under the company's $1.2 billion senior secured credit facility.
At the end of 2000, $350 million had been drawn under this facility. 360networks is currently drawing on the balance, as needed, to complete the development of a global fiber optic network. In response to a number of investor inquiries, 360networks also confirmed it intends to meet interest payments under its debt obligations.
``As a result of cash on hand, sales contracts with customers and credit facilities available to us, we are comfortable that we can meet such obligations,'' said Vanessa Wittman, chief financial officer of 360networks. ``We recognize that these are difficult markets for all of us, but 360networks has always met its debt obligations and we are taking appropriate internal measures to ensure this will not change going forward.''
In the first quarter of this year, 360networks completed sales totaling more than $475 million to major carriers and network service providers for services on its terrestrial and undersea networks.
In addition, more than 50% of 360networks' global network is now in commercial service, including:
- 360atlantic, a transatlantic undersea cable linking the United
States, Canada, the United Kingdom and Ireland
- Approximately 90% of its 43,000-kilometer (26,700-mile) North
American network connecting more than 50 major cities in the United
States and Canada
- Nearly 40% of its European network, which will link 11 countries in
Europe by early 2002
- More than 60% of 360americas, an undersea and terrestrial network
connecting the United States, Brazil, Argentina, Venezuela and
Bermuda
About 360networks
360networks (NASDAQ: TSIX and TSE: TSX) offers network services to telecommunications and data-centric organizations. 360networks is developing one of the largest and most technologically advanced fiber optic mesh networks in the world. By mid-2002, the planned network will span 143,000 kilometers (89,000 miles), and link more than 100 major cities with terrestrial routes and undersea cable systems joining North America, Europe, South America and Asia. 360networks is also developing metropolitan networks in 35 cities worldwide. More information is available at www.360.net.
Forward looking statements: This document may contain statements about expected future events and financial results that are forward looking in nature, and, as a result, are subject to certain risks and uncertainties, including general economic and business conditions, and specific conditions affecting our sector, including pricing pressures and declining prices; our ability to access capital markets to ensure financial liquidity; competition; the inability to attract and retain our anticipated customer base; existing government regulations and changes in, or the failure to comply with, government regulations or obtain required permits or licenses; changes in business strategy or development plans; the ability to attract and retain qualified personnel; and other factors. Actual results may differ materially from those projected by management. For such statements, we claim the safe harbor for ``forward looking statements'' within the meaning of the Private Securities Litigation Reform Act of 1995.
SOURCE: 360networks Inc.
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