FLORHAM PARK, N.J., May 24 /PRNewswire-FirstCall/ -- Global Crossing announced today the pricing of its concurrent public offerings for total gross proceeds of $365 million (or $420 million assuming the full exercise of underwriters' over-allotment options). The offerings consist of common stock for gross proceeds of $240 million (or $276 million assuming the full exercise of underwriters' over-allotment options) and senior convertible notes for gross proceeds of $125 million (or $144 million assuming the full exercise of underwriters' over-allotment options).
The 12 million shares of common stock were priced at $20.00 per share. The $125 million aggregate principal amount of convertible senior notes mature in 2011; were priced at par; will accrue interest at 5.0 percent per annum, payable semi-annually in arrears; and have a conversion rate of 43.5161 shares of common stock per $1,000 principal amount of notes, subject to adjustment.
The 12 million-share common stock offering is expected to close on May 30, 2006. The offering was increased from the originally announced offering size of 6.75 million shares. The underwriters have been granted an option to purchase at the public offering price up to 1.8 million additional shares to cover over-allotments, if any.
The sale of the $125 million in aggregate principal amount of senior convertible notes due in 2011 is expected to close on May 30, 2006. The underwriters have been granted an option to purchase up to an additional $19 million principal amount of the convertible notes to cover over-allotments, if any.
Proceeds from the offerings will be used for general corporate purposes, which may include the acquisition of assets or businesses that are complementary to Global Crossing's existing business, as well as to purchase a portfolio of U.S. treasury securities to collateralize the first six interest payments on the notes and to pay fees and expenses related to the offerings. Neither of the offerings is contingent upon the consummation of the other offering.
Goldman, Sachs & Co. is sole bookrunner and Morgan Stanley & Co. is joint lead manager for the offerings. Copies of the final prospectus relating to the offering may be obtained from Goldman, Sachs & Co., Attn: Prospectus Dept., 85 Broad St., New York, New York 10004, via fax at +1 212 902 9316 or e-mail at prospectus-ny@ny.email.gs.com and Morgan Stanley & Co. Incorporated, Prospectus Department, 1585 Broadway, New York, New York 10036, +1 866 718 1649 or e-mail at Prospectus@Morganstanley.com.
A registration statement relating to these securities was filed and declared effective by the Securities and Exchange Commission.
This press release is neither an offer to sell nor a solicitation of an offer to buy the securities described herein, nor shall there be any sale of these securities in any jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
ABOUT GLOBAL CROSSING
Global Crossing provides telecommunications solutions over the world's first integrated global IP-based network. Its core network connects more than 300 cities in 28 countries worldwide, and delivers services to more than 600 cities in 60 countries and 6 continents around the globe. The company's global sales and support model matches the network footprint and, like the network, delivers a consistent customer experience worldwide.
Global Crossing IP services are global in scale, linking the world's enterprises, governments and carriers with customers, employees and partners worldwide in a secure environment that is ideally suited for IP-based business applications, allowing e-commerce to thrive. The company offers a full range of managed data and voice products including Global Crossing IP VPN Service, Global Crossing Managed Services and Global Crossing VoIP services, to 36 percent of the Fortune 500, as well as 700 carriers, mobile operators and ISPs.
This press release contains statements about expected future events and financial results that are forward-looking and subject to risks and uncertainties that could cause the actual results to differ materially, including: Global Crossing's history of substantial operating losses and the fact that, in the near term, funds from operations will not satisfy cash requirements; legal and contractual restrictions on the inter-company transfer of funds by the company's subsidiaries; the company's ability to continue to connect its network to incumbent carriers' networks or maintain Internet peering arrangements on favorable terms; the consequences of any inadvertent violation of the company's Network Security Agreement with the U.S. Government; increased competition and pricing pressures resulting from technology advances and regulatory changes; competitive disadvantages relative to competitors with superior resources; political, legal and other risks due to the company's substantial international operations; risks arising out of the company's significant deficiencies in internal controls and possible difficulties and delays in improving such controls; the concentration of revenue in a limited number of customers, and the rights of such customers to terminate their contracts or to simply cease purchasing services thereunder; exposure to contingent liabilities; and other risks referenced from time to time in the company's filings with the Securities and Exchange Commission. Global Crossing undertakes no duty to update information contained in this press release or in other public disclosures at any time.
CONTACT GLOBAL CROSSING: Press Contacts Becky Yeamans + 1 973 937 0155 PR@globalcrossing.com Tisha Kresler + 1 973 937 0146 PR@globalcrossing.com Analysts/Investors Contact Laurinda Pang + 1 800 836 0342 glbc@globalcrossing.com IR/PR1
CONTACT: Becky Yeamans, +1-973-937-0155, or PR@globalcrossing.com , or Tisha Kresler, +1-973-937-0146, or PR@globalcrossing.com , or Analysts/Investors Contact: Laurinda Pang, + 1-800-836-0342, or glbc@globalcrossing.com , all for Global Crossing
Web site: http://www.globalcrossing.com/
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