STAR Telecom Receives Commitment for $275 Million
SANTA BARBARA, Calif.--(BUSINESS WIRE)--Feb. 19, 1999--STAR Telecommunications, Inc. (Nasdaq:STRX - news), the seventh largest provider of long distance services in the United States, today announced that it has received a fully underwritten commitment for $275 million in senior secured credit facilities from Goldman Sachs Credit Partners, L.P.
ING Barings and Deutsche Bank have also committed to the facilities and will act as Administrative Agent and Documentation Agent, respectively. The completion of the financing is subject to the execution of definitive loan documents and customary conditions for financings of this type.
The $275 million of facilities will be used to fund STAR's purchase of a nationwide expandable OC-12 fiber backbone connecting 30 major metropolitan areas in the U.S. and STAR's participation as one of four U.S. carriers that have signed as an initial party on the China-U.S. cable. In addition, STAR will utilize the funds to complete its switch build-out in the U.S. and to rollout new switches in France, Switzerland, Austria and additional switches in Germany.
''Obtaining this financing will facilitate the Company's plans to build a first-class international network,'' said Chris Edgecomb, Chairman and CEO of STAR. ''We are pleased to work with Goldman Sachs, ING Barings and Deutsche Bank and view this financing as a milestone in our Company's history.''
This deal will represent the first major syndicated commercial loan transaction for a carrier in the emerging International Long Distance segment of the telecommunications market as well as the STAR's largest financing to date. The financing is expected close in late March 1999.
STAR Telecommunications is a leading provider of global telecommunications services to consumers, long distance carriers, multinational corporations and Internet service providers worldwide. The company has become the seventh largest supplier of long distance services in the United States.
STAR provides international and national long distance services, international private line, Internet services, prepaid calling cards, dial around services and international toll free services. The STAR Telecom global network connects over 43 countries worldwide and includes 17 global switching facilities, ownership in 17 transoceanic cable systems and a North American fiber network connecting 30 cities. Visit STAR Telecom at startel.com.
Except for the historical information contained herein, this press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbors created thereby. The Company's future actual results could differ materially from the forward-looking statements discussed herein. A list of the factors that could cause actual results to differ materially can be found in the documents the Company files with the SEC, including those contained in STAR's prospectus, and the Form 10-K for the year ended December 31, 1997.
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Contact:
STAR Telecommunications
Kelly Enos, 805/899-1962 (CFO)
Ben Helvey, 805/899-1962 (Investor Relations)
or
Morgen-Walke Associates
Todd Friedman or Alex Wellins, 415/296-7383 |
