PSINET AND HICKS, MUSE, TATE & FURST MAKE SIGNIFICANT INVESTMENT IN METROCALL EACH COMPANY TO INVEST MORE THAN $17 MILLION FOR MAJOR STAKE in Metrocall's Wireless Data and Messaging Future
ALEXANDRIA, Va., Feb 3, 2000 /PRNewswire via COMTEX/ -- Metrocall, Inc. (Nasdaq: MCLL ) today announced that it will raise approximately $51 million in new equity capital as part of separate equity investments in its common stock being made by three major new investors: PSINet Inc. (Nasdaq: PSIX ) of Herndon, Va.; and Hicks, Muse, Tate & Furst Incorporated, a private investment firm; and a third party who is a significant strategic technology company.
Each of the three companies will acquire approximately 7.8 million shares of Metrocall Common Stock and each will own approximately 9.9% of the company upon completion of these investments and full conversion of the Series C convertible Preferred Stock owned by AT&T Wireless. Each investor will pay $2.19 a share for its stake or a total of $17 million. The Company will use the proceeds of the equity issuance to pay down debt.
In addition, Metrocall, PSINet, Hicks Muse, the strategic investor and other investors have agreed to establish a joint venture that will offer a suite of technology services to small/home office (SOHO) customers and middle-market enterprises. These services will include broadband Internet access, paging, two-way wireless data solutions and e-mail hosting.
"These three major investments are an endorsement of our long range strategy in the wireless data and messaging industry as well as a powerful recognition of the value of our six million mobile wireless messaging subscribers. Also, these investments recognize the future for the Reflex 25 protocol for providing Short Messaging Service (SMS) and wireless data over our networks," stated William L. Collins, III, president & CEO of Metrocall.
"This is a tremendous opportunity," said PSINet president and COO, Harold S. "Pete" Wills. "Metrocall has a strong management team, solid distribution, and is uniquely positioned in the burgeoning wireless enterprise applications arena. The Metrocall relationship is a key component of our strategy to expand PSINet's products and reach into the rapidly growing population of wireless data users worldwide."
Michael J. Levitt, a partner of Hicks, Muse, said: "We are delighted to partner with PSINet to provide this financing for Metrocall. The investment reflects our confidence in the long-term potential of the wireless data and messaging sector, and in the outstanding enterprise that Bill Collins and his management team have built. Going forward, we believe that Metrocall is positioned as the premier participant in its market with the strategic, operational and financial resources to capitalize on its significant growth potential."
Each of the companies, PSINet, Hicks Muse and the strategic investor will have the right to appoint a representative to Metrocall's board of directors.
PSINet Inc. is an Internet Super Carrier offering global e-Commerce infrastructure and a full suite of retail and wholesale Internet services through wholly owned PSINet subsidiaries. Services are provided on PSINet-owned and operated fiber, satellite, Web hosting and switching facilities providing direct access in more than 800 metropolitan areas in 25 countries on five continents. PSINet information can be obtained by e-mail at info@psi.com, by accessing the Web site at www.psinet.com or by calling in the U.S. 800-799-0676.
Hicks, Muse, Tate & Furst, Incorporated is a leading global private investment firm. Since its formation in 1989, the firm has completed or currently has pending more than 300 transactions with a total capital value of approximately $40 billion. Headquartered in Dallas, the firm also has offices in New York, London and Buenos Aires.
The strategic investor's agreement is subject to approval of its board. The transactions will be subject to anti-trust clearance and other customary closing conditions.
Metrocall, headquartered in Alexandria, Va., is one of the leading wireless data and messaging companies in the United States, serving more than six million (pro forma with previously announced NationPage acquisition) subscribers. In addition, Metrocall markets digital PCS phones and offers two-way messaging via a nationwide wireless data network. For more information on Metrocall please visit www.metrocall.com or AOL Keyword: Metrocall.
Safe Harbor Statement Under the Private Securities Litigation Reform Act
of 1995 The statements contained in this release which are not historical facts, such as those concerning future financial performance and growth, are forward-looking statements that are subject to risks and uncertainties, including factors affecting the Company's business generally, as well as those identified in Metrocall's Annual Report on Form 10-K, and in Metrocall's periodic reports under the Securities and Exchange Act of 1934, and could differ materially from those set forth in the forward-looking statements.
SOURCE Metrocall, Inc. |
