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Technology Stocks : Infonet - Leader of Managed Data Communicaton Services -- Ignore unavailable to you. Want to Upgrade?

To: JakeStraw who wrote (200)	1/15/2003 8:35:39 AM
From: JakeStraw	Read Replies (1) \| Respond to of 241

Infonet Pays Off Long-Term Bank Debt Wednesday January 15, 8:03 am ET biz.yahoo.com EL SEGUNDO, Calif.--(BUSINESS WIRE)--Jan. 15, 2003--Infonet Services Corporation (NYSE:IN), in a move that underscores the strengths of its financial position, has repaid all $82 million of its outstanding debt. "With over $450 million in cash and cash equivalents after this debt repayment, we have more than sufficient cash to fund our long-term business strategy," said Jose A. Collazo, Infonet's Chairman, President and CEO. "We see being bank debt free as an excellent way to enhance shareholder value." Infonet recently announced that it received an incentive cash payment of $56 million resulting from better-than-budget performance and on-time completion of an outsourcing contract. The cash infusion prompted the company to pay down the debt, which will reduce annual interest and other debt-related expenses by more than $4 million. "In the telecom space, a bank debt-free balance sheet is a rarity," said Mr. Collazo. "With all the turmoil in our industry, clients looking to outsource their mission critical applications place great value in knowing their network service provider is financially healthy. This repayment punctuates the message that Infonet is a strong, stable partner." In conjunction with the early extinguishment of this debt, Infonet will recognize a one-time extraordinary expense of approximately $3 million in the third quarter of its 2003 fiscal year.