January 08, 2003 16:30
Mpower to Reshape Company Through Strategic and Financial Transactions
ROCHESTER, N.Y., Jan. 8 /PRNewswire-FirstCall/ -- Mpower Communications Corp. (OTC Bulletin Board: MPOW), a provider of integrated data and voice services to business customers, today announced several strategic and financial transactions which should further strengthen the company financially and focus its operations on its California, Nevada and Illinois markets.
Mpower has reached an agreement with RFC Capital Corporation, a wholly owned subsidiary of Textron Financial Corporation, for a three-year funding facility of up to $7.5 million, secured by certain of the company's receivables. Mpower anticipates closing this facility by January 31, 2003. This new funding is expected to provide near-term liquidity for Mpower as it continues to restructure its operations. The company indicated that it is also in active discussions with additional potential investors.
Mpower is bringing geographic concentration to its business by transitioning its customers and assets in Florida, Georgia, Ohio, Michigan and Texas to other service providers. Each of these transactions is expected to result in cash infusions to Mpower and significant reductions to the company's cost structure. Importantly, these transactions are expected to provide uninterrupted service for customers transitioning from Mpower and job opportunities for the company's employees in these markets.
* Mpower has reached an agreement for its Southeast markets, and will
transition its customers in Atlanta, Ft. Lauderdale, West Palm Beach,
Miami and Tampa to Orlando-based Florida Digital Network Inc., a full-
service integrated communications provider.
* Mpower has also reached an agreement for its Texas markets, and will
transition its customers in Dallas/Ft. Worth, Houston, Austin and San
Antonio to Xspedius Equipment Leasing, an affiliate of Xspedius
Communications, a competitive communications carrier headquartered in
St. Louis.
* Finally, Mpower also reached an agreement for its Michigan and Ohio
markets, and will transition its customers in Detroit, Cleveland and
Columbus to LDMI Telecommunications, an integrated communications
provider serving primarily business customers in the Great Lakes
region.
Twelve months ago, Mpower set out on a path to strengthen its balance sheet. In July of 2002, Mpower completed a financial recapitalization that retired approximately $600 million in long-term debt and preferred stock. As of January 3, 2003, the company's remaining $50 million in long-term debt was also retired. Coupled with the transactions announced today, the resulting new cash, reduced operational cost structure and new financing are expected to significantly improve Mpower's long-term viability.
"Over the past year we believe we have executed on our vision and have strengthened the company from both a financial and an operational perspective," stated Mpower Communications Chairman and Chief Executive Officer Rolla P. Huff. "In an industry burdened by debt-laden telecommunications companies, Mpower stands apart from the crowd as a company completely free of long-term debt."
"The new Mpower will have geographic focus across 12 markets in California, Nevada and Illinois with more financial and operational strength, scale and agility," added Huff. "While our company will now be focused exclusively on serving and growing our base of 75,000 customers in these three states, we are extremely pleased that these agreements will provide ongoing communications services for Mpower customers in every market and new opportunities for many of the valued employees who will be leaving the company."
About Mpower Holding Corporation
Mpower Holding Corporation (NASD OTC: MPOW) is the parent company of Mpower Communications, a facilities-based broadband communications provider offering a full range of data, telephony, Internet access and Web hosting services for small and medium-size business customers. Further information about the company can be found at mpowercom.com.
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Xspedius Strengthens Customer Base, Network Assets Through a Transaction for the Texas Holdings Of Mpower Communications
ST. LOUIS--(BUSINESS WIRE)--Jan. 8, 2003--
New Company Name, Xspedius Communications, More Closely Reflects
Breadth and Depth of Telecommunications and Data Services
Xspedius Management Co., LLC and its affiliates (Xspedius)
today announced a significant expansion of its Texas customer base and network assets in a transaction involving the Texas operations of Mpower Communications Corp. (OTC BB: MPOW.OB).
Terms of the transaction, which is expected to close once all necessary approvals are obtained, were not disclosed.
The transaction adds nearly 6,000 business customers and major new network capacity to Xspedius' existing operations in Dallas-Ft. Worth, Austin, Houston and San Antonio. Xspedius will provide these new customers with the same locally based, personal customer service approach that has fueled the company's rapid growth.
"We are very excited to begin building a business relationship with Mpower's customers in Texas. They are a perfect fit with the profile of our own customers, who are smart-minded business people with a need for high quality, reliability, choice and value in their telecommunications and data services," said Xspedius President and CEO Mark W. Senda. "The transaction involving Mpower's Texas properties will enable us to apply our proven operational efficiencies as we consolidate their networks into ours, resulting in even greater service quality for our customers and growth potential for Xspedius."
"The management team and our investors are extremely pleased with the progress we've made at Xspedius since concluding the transaction for e.spire in the middle of 2002, and we expect to see the same benefits from this new investment in Texas," said Xspedius Chairman James C. Allen. "We are continuing to evaluate potential merger partners in other attractive U.S. regions to complement our aggressive growth strategy."
Xspedius also announced that it will consolidate all of its holdings under the new name Xspedius Communications. The name change, which is subject to regulatory approval, more closely reflects the breadth and depth of the company's telecommunications and data services. Xspedius Communications will have a footprint that includes 20 states, plus the District of Columbia, and more than 3,500 route miles of fiber in a total of 37 markets, including Atlanta, Dallas/Ft. Worth, Houston, Fort Lauderdale/Miami/West Palm Beach, Tampa, and Washington, D.C./Northern Virginia.
About Xspedius
Xspedius Management Co., a privately held firm headquartered in St. Louis, Missouri, is funded by Thermo Capital Partners. At the helm of the company is James C. Allen, chairman, and Mark Senda, president and CEO, two industry pioneers who have previously founded and led such notable communications companies such as Brooks Fiber, MetroNet, AT&T Canada and MFS Communications. Xspedius Management Company also manages Xspedius Communications LLC, a regional CLEC headquartered in Lake Charles, La.
About Thermo
Thermo is part of the Thermo Companies based in Denver, Colorado, a highly successful group of companies focused on opportunities in the telecommunications, industrial, power generation, natural resources, and real estate industries. For more information about Thermo, please contact Jim Lynch at Thermo Capital Partners, LLC (914) 576-7357 or jim@thermoco.com.
CONTACT: Xspedius Management Co., Atlanta
Michelle Machado, 404/355-5757
michelle.machado@espire.net
or
Ketchum for Xspedius Management Co., Atlanta
David Doolittle, 404/879-9266
david.doolittle@ketchum.com
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January 08, 2003 16:34
Midwest Expansion Continues; LDMI Telecommunications Announces Agreements To Acquire Mpower Communications' Michigan and Ohio Assets
HAMTRAMCK, Mich., Jan. 8 /PRNewswire/ -- LDMI Telecommunications, the largest telecom company headquartered in Michigan, today took another significant step in its midwest expansion, announcing agreements to acquire the Michigan and Ohio assets and customers of Mpower Communications. Terms of the agreements were not disclosed.
"We are delighted with this acquisition opportunity, one that will have an immediate impact on our geographic reach and the range of services LDMI delivers," said LDMI Chairman and Chief Executive Officer Patrick O'Leary. "Mpower's state-of-the-art network, switching facilities, and business customer base represent an ideal strategic fit for us. We've solidified our position as the leading midwest-based Integrated Service Provider."
Since its founding in 1992, LDMI has demonstrated steady growth, even against the backdrop of the recent downturn in the telecommunications sector. LDMI began offering local phone service to Michigan residents in 2001, and has turned up more than 70,000 local lines since then. The company has also added several Internet and data services to its product portfolio, including high- speed connectivity, web hosting, security, business applications, consulting services, and more. LDMI has been EBITDA positive for seven consecutive quarters.
Founded in 1996, Mpower Communications Corp. (OTC Bulletin Board: MPOW) is a facilities-based communications provider offering an integrated bundle of broadband data and voice communication services to small- and medium-size business customers. Through its broadband DSL and T1 service delivery platforms, Mpower delivers a full range of telephony, high-speed data, Internet access and Web hosting solutions.
LDMI Telecommunications is an integrated communications provider serving business customers in the Great Lakes region. Its services include local and long distance phone service, and data services such as high-speed connectivity, security, hosting, and professional network services. Founded in 1992, the Company services more than 80,000 customers, and has been named one of the Top Ten Privately Held Michigan Businesses for 3 consecutive years.
SOURCE LDMI Telecommunications
/CONTACT: Luke Haase, +1-231-932-0400, for LDMI Telecommunications/
(MPOW) |
