ARTT may move on some great news.
quote.yahoo.com
Advanced Radio Telecom Receives Financing from Lucent Technologies
SEATTLE and BELLEVUE, Wash., July 28 /PRNewswire/ -- Advanced Radio Telecom (ART) (Nasdaq:ARTT - news) announced today that it has received a commitment for up to $25 million of financing from Lucent Technologies, Inc. (NYSE: LU - news), subject to various conditions,
including execution of a definitive agreement. This new financing, combined with the currently available $10 million purchase money facility from Lucent, will allow ART to construct its metropolitan area networks in three initial markets: Seattle, Portland and Phoenix. ART is presently testing its fiber quality ATM broadband data network and is providing service to a number of beta customers in Bellevue, WA. Based on the progress made to date, it appears that commercial service in Seattle will be introduced ahead of the originally scheduled mid-October time frame.
''We are delighted that a company of Lucent's stature is willing to provide financing for the company,'' said Henry C. Hirsch, chairman, president and CEO. ''We now have adequate capital to clearly demonstrate the tremendous opportunity at hand in delivering broadband
communications to the vast majority of the business marketplace and time to selectively raise the long-term capital we need to accelerate the implementation of our strategy.''
''Lucent is pleased that ART selected us to provide the technology muscle behind its broadband data network,'' said Nina Aversano, president, Lucent's Global Commercial Markets. ''This new network has the potential to offer business customers a range of useful data services that will help them meet their business objectives.''
ART entered into a letter of intent with Lucent in April whereby Lucent will act as integrator in the building of ART's broadband data network. The $25 million loan will mature on June 30, 1999. Lucent will be issued warrants to purchase up to 3.3% of ART's common stock if the facility is fully utilized. An exercise price of $.01 per share applies to the first 1% of the warrants with the remaining 2.3% at market price.
When ART raises in excess of $50 million of debt or equity capital, the $25 million of Lucent loans must be repaid and the commitment will terminate. Lucent would then make available to ART purchase money loans equal to 200% of the aggregate capital raised not to exceed the
previously announced $200 million commitment, which includes the initial $10 million purchase money facility. The availability of the $200 million purchase money loans are also subject to various conditions, including execution of definitive agreements.
ART is a ''first mile'' provider of broadband communications services to the business community. By integrating its own fixed-wireless and national spectrum assets with fiber optic transport technology, ART is capable of serving the vast majority of businesses that do not have direct fiber connectivity. With Lucent Technologies, Inc., as its network integrator, ART is building Internet Protocol (IP) metropolitan area networks that will support a full range of Internet access services, Intranets, extranets, IP Telephony, and enhanced Internet applications on local, regional, and national levels. Using advanced, cost-effective technologies in its national 38GHz spectrum
footprint ART intends to extend its network into the top 100 U.S. markets over the next five years. For further information, please see ART's Web site at art-net.net. ....
Joe PTG&LI !!!
|
