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Strategies & Market Trends : Mr. Pink's Picks: selected event-driven value investments -- Ignore unavailable to you. Want to Upgrade?

To: Jane4IceCream who wrote (16028)	10/25/2001 10:03:28 PM
From: SouthFloridaGuy	Read Replies (2) \| Respond to of 18998

Don't joke with Bain Capital. Smart cannot begin to describe the people who work there. Go to their website, Harvard, Wharton, Harvard, Wharton. My credentials would be thrown away. Bain Capital Signs Letter of Intent to Invest $100 Million in USi Bain Capital Investment Expected to Fully Fund ASP Market Leader Through Cash Flow Positive ANNAPOLIS, Md., Oct 11, 2001 (BUSINESS WIRE) -- USinternetworking, Inc. (USi, Nasdaq: USIX chart, msgs), the leading Application Service Provider (ASP), today announced that Bain Capital Partners, LLC (Bain), a private investment firm with $12 billion of assets under management, has executed a letter of intent with USi providing for an equity investment of $100 million. The investment is contingent upon a number of conditions including among others a balance sheet restructuring, execution of definitive documentation, any necessary regulatory approvals, and final legal and accounting due diligence. Pursuant to the letter of intent, Bain and USi would work together to restructure the balance sheet and implement a recapitalization plan. The investment, upon completion, is expected to fund the Company through cash flow positive, while maintaining a strong balance sheet. Under the terms of the letter of intent, affiliates of Bain would initially invest $75 million in USi, with an additional $25 million available upon achievement of certain business milestones. The equity to be issued in conjunction with the recapitalization is expected to comprise most of the Company's equity. "This vote of confidence in USi's business by one of the world's most prestigious private investment firms acknowledges the strength of the ASP value proposition and USi's leadership position," said Andrew A. Stern, CEO, USi. "Bain's proposed investment addresses financial viability concerns that have limited our growth. USi can now focus its energies on growing the business and delivering the best enterprise ASP services available." "Bain Capital invests in growing companies with strong management teams and competitive advantages in promising industry sectors. Based upon our experience in the ASP industry, we are excited about the prospects for USi," said Andrew Balson, a Managing Director at Bain Capital. "At the same time, we remain very pleased with our investment in Interpath, which was our original investment in the ASP sector, and is fast-emerging as a market leader." USi's Board of Directors approved the letter of intent on October 8, 2001. USinternetworking, Inc. will hold its quarterly conference call on Tuesday, October 30, 2001 at 5:30 p.m. ET, at which time the aforementioned topic will be further addressed. The call will be accessible via Webcast at usi.net. A replay of the call will be available beginning at 9:00 p.m. ET on October 30, 2001 and will remain available through 7:00 p.m. ET on November 6, 2001.