Here it is: NextWave Telecom Announces $1.6 Billion of Financial Investments and Strategic Partnerships
HAWTHORNE, N.Y.--(BUSINESS WIRE)--Dec. 16, 1999--
Global Crossing, Liberty Media, Pacific Capital Group
and Texas Pacific Group Lead New Equity Investors;
Global Crossing and NextWave Enter Major
Strategic Services Agreement
NextWave Telecom Inc. today announced that it has entered into significant financial and strategic
agreements moving it closer to its goal of deploying the first state-of-the-art wireless
telecommunications network specifically designed to provide next-generation wireless services. Total
new equity investments in NextWave amount to over $1.6 billion from key investors including Global
Crossing Ltd. (Nasdaq: GBLX), Liberty Media Corporation (NYSE: LMG.A and LMG.B), Pacific
Capital Group and Texas Pacific Group.
"NextWave is extraordinarily pleased to announce that this impressive group of blue chip companies
and investors has chosen to join NextWave to build the most advanced IP-based third generation
wireless telecommunications network," said Allen Salmasi, NextWave's Chairman and Chief
Executive Officer. "These companies are among the most innovative and sophisticated telecom
companies and investment firms in America, with a broad range of experience in telecommunications
financing, network deployment and operations, information technology, Internet media and content,
web hosting services, and e-commerce. We could not have assembled a better team."
NextWave also announced a strategic services agreement with Global Crossing. The strategic
services agreement makes Global Crossing the preferred provider of backhaul, long distance
backbone, web-hosting, and other communications services to NextWave.
"Global Crossing has built and is operating a worldwide state-of-the-art backbone network that
today can provide the most competitive package of end-to-end broadband IP and data services
packet communications service capabilities from Europe to Asia," said Robert Annunziata, Global
Crossing's Chief Executive Officer. "NextWave is building the next generation local access network
that will be a natural complement to our global next generation network."
Continued Annunziata: "With this new financial support for NextWave, we are confident that
broadband high speed local access capability will be available to our customers much sooner than
would otherwise be available. Global Crossing will provide NextWave with local, long distance, and
international network capacity, web hosting, and co-location services at market prices - so we benefit
from the explosive growth we foresee for fixed and NextWave's fixed and mobile data services."
"We are very excited about our investment in NextWave - there is a new era emerging where Internet
access will be increasingly available over wireless networks," said Robert R. Bennett, Liberty Media
Corporation's President and Chief Executive Officer. "NextWave's plan to deploy a world-class
IP-based wireless network complements our existing information and e-commerce businesses - by
investing in NextWave, with a strategic set of partners, Liberty Media has a unique opportunity to be
on the ground floor of the wireless Internet explosion."
A spokesperson for Texas Pacific Group also commented, "We look forward to contributing the
financial and strategic resources needed to implement this very exciting business plan. We believe
NextWave will be able to bring a wide range of highly competitive broadband fixed and full mobility
wireless services currently not available through any other service provider."
"We are also pleased to have Global Crossing as an equity investor and strategic services provider,"
Mr. Salmasi continued. "Global Crossing is a proven leader in the rapidly changing world of
telecommunications with a nationwide broadband network that synergistically complements our
planned network. Through the virtual integration of our respective networks, we will fulfill the promise
of anywhere, anytime, always-on high-speed Internet access."
NextWave also announced that it is modifying its plan of reorganization, which is now pending before
the Bankruptcy Court for the Southern District of New York, to reflect the agreements announced
today. As modified, the plan would leave the Federal Communications Commission's (the "FCC's")
claim against NextWave unimpaired. A confirmation hearing has been scheduled for January 5, 2000,
subject to receipt of either the opinion of the Second Circuit or an order from the Second Circuit
allowing confirmation to proceed.
"The convergence of wireless and Internet services and the recent mega-mergers, acquisitions and
joint ventures in the wireless sector have made these new financing relationships possible for us,
creating an opportunity for NextWave to implement its business plan immediately," said Mr. Salmasi.
"The modified plan of reorganization preserves everyone's legal rights, including the FCC's, and
requires no waivers of the FCC's Designated Entity rules for any of the investors, making it a
'win-win' for all parties. In fact, NextWave is fully committed to supporting the governmental and
private sector initiatives to bridge the "Digital Divide" and provide wireless Internet Access to
underserved communities of our country," continued Salmasi.
Today's filing also modifies the treatment of general unsecured creditors under NextWave's
reorganization plan. "Many of these claims belong to small and medium-sized companies, including
minority and women-owned businesses, who stood with us during NextWave's earliest days," Mr.
Salmasi said. Under the modified plan, such creditors are entitled to cash payment of the full amount
of their allowed claims. Mr. Salmasi continued, "In ways that can't be measured in dollars and cents,
that modification provides me the greatest amount of satisfaction."
NextWave's Plan of Reorganization gives birth to one of the most technologically advanced IP-based
packet-switched third generation wireless networks in the world that will result in the continued
leadership of the United States in the broadband telecommunications arena. This was the original
premise behind the creation of the entrepreneurs' block of the spectrum by the United States
Congress and the FCC.
David Friedman, of Kasowitz, Benson, Torres & Friedman, who is counsel to the Official Creditors
Committee of NextWave, underscored the Committee's support for rapid confirmation of
NextWave's modified reorganization plan. "The Committee strongly endorses the modified plan
NextWave has filed today. Obviously, with this kind of strategic backing, the Company's modified
plan has an excellent chance of succeeding in the marketplace. Given that the plan now preserves the
government's interest, it appears there should be no obstacles to NextWave moving rapidly through
the confirmation process with the support of all constituencies."
Representatives of Global Crossing, Pacific Capital Group, Texas Pacific Group and Bay Harbour
Management will join NextWave's Board of Directors upon effectiveness of NextWave's plan of
reorganization.
About NextWave
NextWave Telecom, Inc. (www.nextwavetel.com) was organized in 1995 as a leading provider of
wireless high-speed Internet access and voice communications services to the consumer and business
market on a nationwide basis. NextWave holds a total of 95 PCS licenses, covering more than 166
million POPs coast to coast, that include all top 10 U.S. markets, 28 of the top 30 markets, and 40
of the top 50 markets. NextWave's carriers' carrier strategy will allow existing carriers and new
service providers to market NextWave's network services through wholesale airtime arrangements
offered by the company. In September 1999, NextWave announced that over 99% of voting
creditors and shareholders have expressed approval of its Plan of Reorganization. Other major
investors include CIBC, Loews Corporation, BFD Equity Associates, Bay Harbour Management,
Joseph Littlejohn & Levy, Resurgence Asset Management LLC and other major financial institutions.
About Global Crossing, Ltd.
Global Crossing Ltd. (Nasdaq: GBLX) is building and offering services over the world's first global
fiber optic network with 97,200 announced route miles, serving five continents, 24 countries and
more than 200 major cities. The Global Crossing Network and its telecommunications and Internet
product offerings will be available to over 80% of the world's international communications traffic.
Global Crossing hosts more than 300 of the top Internet brands in its Global Centers. Among the
brands are some of the largest and most densely trafficked sites on the Web, including Yahoo!, The
Motley Fool, Ziff Davis, MP3.com and eToys. Global Crossing's operations are headquartered in
Hamilton, Bermuda, with principal offices in Los Angeles, California; London, England; Morristown,
New Jersey; and Rochester, New York.
About Liberty Media Corporation
Liberty Media (NYSE: LMG.A and LMG.B) holds interests in a broad range of video programming,
communications, technology and Internet businesses in the United States, Europe, South America and
Asia. Liberty Media's principal assets include interests in Starz Encore Media Group, Discovery
Communications, Inc., Time Warner Inc., QVC, Inc., Liberty Digital, Inc., USA Networks, Inc.,
Telewest Communications plc, TV Guide, Inc., General Instrument Corporation, Sprint PCS Group
and The News Corporation Limited. More information about Liberty Media and its affiliates is
available on Liberty's web site at www.libertymedia.com.
About Texas Pacific Group
Texas Pacific Group, founded in 1993, is a private investment partnership with capital in excess of $7
billion, and with offices in Fort Worth, TX, San Francisco, CA, Washington, D.C., and London. The
partnership has made significant investments in a broad range of industries, including,
technology/telecommunications, consumer products, healthcare, airlines, food and beverage, and oil
and gas. TPG has extensive experience with bankruptcy cases and is well known for turning around
Continental Airlines and America West Airlines.
About Pacific Capital Group
Pacific Capital Group, Inc. is a private merchant bank formed by Gary Winnick that founded Global
Crossing, Ltd. and has invested in telecommunications, new media, Internet services and enabling
technologies, financial services, and real estate. Pacific Capital Group invests in these markets as well
as in other opportunities affected by technology and technological change. Pacific Capital Group is
headquartered in Los Angeles, California.
CONTACT: For NextWave:
The MWW Group
Matthew Rose, 201/964-2376
mrose@mww.com
or
NextWave Telecom, Inc.
Michael Wack, 202/347-2771
mwack@nextwavetel.com
Michael Regan, 202/347-2771
mregan@nextwavetel.com
or
Global Crossing, Ltd.
Investors:
Jensen Chow, 310/385-5283
jchow@globalcrossing.com
or Media:
Tom Goff, 310/385-5231
tgoff@globalcrossing.com
or
Liberty Media Corporation
Vivian Carr, 720/875-5406
18:26 EST DECEMBER 16, 1999 |
