Sep, 2001 : Metromedia Receives Extensions On Financing
📅 - Metromedia Fiber Network, Inc. (mmfn.com), a leader indeployment of optical IP Internet infrastructure within key metropolitanareas domestically and internationally, announced today that it has receivedan extension of the secured note purchase agreement for the $150 millionnote facility led by Citicorp, USA.
As extended, the note purchase agreement will terminate on Oct. 1, 2001 ifthe closing has not occurred on or prior to such date. In connection withthe extension the obligations of the note purchasers to purchase the notesare now subject to the following additional conditions:
First, the destruction of the World Trade Center on Sept. 11, 2001 and thecollapse of the neighboring buildings and market disruptions as aconsequence thereof (and any damage that may have been caused to thefiber-optic networks of the company and its subsidiaries in that area) willnot result in a material adverse effect on the business, assets, results ofoperations, financial condition or liabilities of the company and itssubsidiaries.
Secondly, subsequent to Sept. 6, 2001 no adverse change in financial,banking or capital market conditions will have occurred that, in thejudgment of the note purchasers, could materially impair the ultimatesyndication or distribution of commitments or notes issued under the notepurchase agreement or otherwise render the purchase of the notesinadvisable.
The company also announced that it has received an extension until Sept. 19,2001 of the commitment letter for $235 million of vendor financing and anextension until Sept. 21, 2001 of a commitment from an investor for a $50million convertible debt investment.
The company says it cannot provide any assurances that it will be able toconsummate any of the financings it is pursuing. Each of the financings(including the $180 million convertible debt investment by certain of thecompany's affiliates) is contingent upon the consummation of the otherfinancings. In the event that the company does not consummate thefinancings, it will need to seek protection under the bankruptcy laws. Inthe event that the company does consummate the financings, the company'sstockholders will be significantly diluted as a result of the issuance ofequity to the parties providing financing.
As extended, the note purchase agreement will terminate on Oct. 1, 2001 ifthe closing has not occurred on or prior to such date. In connection withthe extension the obligations of the note purchasers to purchase the notesare now subject to the following additional conditions:
First, the destruction of the World Trade Center on Sept. 11, 2001 and thecollapse of the neighboring buildings and market disruptions as aconsequence thereof (and any damage that may have been caused to thefiber-optic networks of the company and its subsidiaries in that area) willnot result in a material adverse effect on the business, assets, results ofoperations, financial condition or liabilities of the company and itssubsidiaries.
Secondly, subsequent to Sept. 6, 2001 no adverse change in financial,banking or capital market conditions will have occurred that, in thejudgment of the note purchasers, could materially impair the ultimatesyndication or distribution of commitments or notes issued under the notepurchase agreement or otherwise render the purchase of the notesinadvisable.
The company also announced that it has received an extension until Sept. 19,2001 of the commitment letter for $235 million of vendor financing and anextension until Sept. 21, 2001 of a commitment from an investor for a $50million convertible debt investment.
The company says it cannot provide any assurances that it will be able toconsummate any of the financings it is pursuing. Each of the financings(including the $180 million convertible debt investment by certain of thecompany's affiliates) is contingent upon the consummation of the otherfinancings. In the event that the company does not consummate thefinancings, it will need to seek protection under the bankruptcy laws. Inthe event that the company does consummate the financings, the company'sstockholders will be significantly diluted as a result of the issuance ofequity to the parties providing financing.
Reads: 1059 | Category: General | Source: TheWHIR : Web Host Industry Reviews
URL source: http://www.thewhir.com/marketwatch/metro918.cfm
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