INIT Interliant Closes Public and Private Exchange Transactions of 7% Convertible Notes; Transactions Result in $120 Million Debt Reduction
PURCHASE, N.Y., Jan 2, 2002 (BUSINESS WIRE) -- Interliant, Inc. (Nasdaq:INIT), a leading global application service provider (ASP), announced today that it has closed both its private exchange transaction and its public exchange offer with holders of its outstanding 7% Convertible Subordinated Notes issued February 2000 (Subordinated Notes), which transactions were previously announced by the Company on October 24, 2001 and December 14, 2001, respectively. The public exchange closed on December 13 and the private transaction closed December 31, 2001. The Company accepted $37.5 million in principal amount of the Subordinated
Notes under the public exchange and $126.8 million in principal amount under the private transaction resulting in an aggregate participation rate of 99.6% among all of the holders of the Subordinated Notes. As a result of theses
transactions, Interliant has reduced its outstanding debt by $120 million.
The material terms of the exchange under the private and public transactions were identical. Interliant issued $270.00 principal amount of senior notes convertible into 270 shares of its common stock, issued warrants to purchase
67.50 shares of its common stock at an exercise price of $0.60 per share, and paid $70.00 in cash in exchange for each $1,000 principal amount of Subordinated
Notes that was tendered in each of those transactions.
About Interliant
Interliant, Inc. (Nasdaq:INIT) is a leading global application service provider (ASP) and pioneer in the ASP market. Interliant's INIT Solutions Suite includes
managed messaging, managed hosting, security, Web hosting (branded solutions, OEM and private label), and rofessional services. Interliant, headquartered in
Purchase, NY, has forged strategic alliances with the world's leading software, networking and hardware manufacturers including Microsoft (Nasdaq:MSFT), Dell
Computer Corporation (Nasdaq:DELL), Oracle Corporation (Nasdaq:ORCL),
Verisign/Network Solutions (Nasdaq:VRSN), IBM (NYSE:IBM), Sun Microsystems Inc.
(Nasdaq:SUNW), and Lotus Development Corp. For more information about
Interliant, visit interliant.com.
Interliant and INIT Solutions Suite are trademarks of Interliant, Inc., in the
United States, other countries, or both. Other company, product, and service
names may be trademarks or service marks of others.
This press release contains forward-looking statements that can be identified by
the use of words such as "anticipate," "believe," "estimate," "expect,"
"intend," "may," "will," "plan," "forecast" and similar words and expressions.
Such forward-looking statements involve risks and uncertainties that may cause
actual results, performance, achievements and the timing of certain events to
differ significantly from the results discussed or implied in the
forward-looking statements. Therefore, no forward-looking statement can be
guaranteed. Important factors to consider in evaluating such forward-looking
statements include demand for our services will increase and other competitive
market factors, changes in Interliant's business strategy or an inability to
execute Interliant's strategy due to unanticipated changes in its business, its
industry or the economy in general, unforeseen difficulties in integrating
acquisitions and other factors set forth more fully in Interliant's Annual
Report on Form 10-K for the fiscal year ended December 31, 2000, and other
filings with the Securities and Exchange Commission. It is not possible to
foresee or identify all factors affecting Interliant's forward-looking
statements and investors therefore should not consider any list of factors
affecting Interliant's forward-looking statements to be an exhaustive statement
of risks, uncertainties or potentially inaccurate assumptions. Interliant does
not have a policy of updating or revising forward-looking statements, and thus
it should not be assumed that Interliant's silence over time means that actual
events are bearing out as expressed or implied in such forward-looking
statements.
CONTACT: Interliant, Inc.,Purchase
Rosanne Desmone, 703/762-1759
rdesmone@interliant.com
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-0-
KEYWORD: NEW YORK
INDUSTRY KEYWORD: COMPUTERS/ELECTRONICS
E-COMMERCE
INTERNET
SOFTWARE
TELECOMMUNICATIONS
SOURCE:
Interliant,
Inc.
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