EXHIBIT 99.1
Thursday July 20, 8:54 am Eastern Time
Company Press Release
SOURCE: RSL Communications, Ltd.
RSL COM Receives $100 Million Loan Facility from Ronald S. Lauder
HAMILTON, Bermuda and NEW YORK, July 20 /PRNewswire/ -- RSL Communications, Ltd.
(Nasdaq: RSLC - news) today announced that it has signed an agreement for an
unsecured loan facility totaling $100 million with its Chairman of the Board and
principal shareholder, Ronald S. Lauder. The loan facility is available until
June 30, 2001.
Ronald S. Lauder, Chairman of RSL COM said "The Company's continued focus on
data/Internet products in its European operations and the disposition of
non-strategic assets to improve its financial strength is the best way to
maximize shareholder value. This loan facility will be available for RSL COM to
continue to fund key growth areas and pursue opportunities in its core markets.
I continue to support RSL COM and am confident in management's ability to
implement this plan."
"Our primary shareholder continues to endorse the Company's strategy and is
demonstrating his continued financial support," said Itzhak Fisher, President
and CEO of RSL COM. "While we have the right, beginning in 2001, to sell our
shares in Telegate Holding for minimum proceeds of approximately $400 million,
this loan facility will give us additional flexibility to implement our business
plan and continue our European data and Internet initiatives. With the Company's
cash on hand, monetization of additional non-core assets, and this loan facility
from Ronald Lauder, we will have more than enough capital to operate our
business into the first quarter of 2002."
The Company will pay LIBOR plus 4.5% on any amounts drawn under the facility and
will issue to Mr. Lauder warrants to purchase 75,000 RSL COM Class A common
stock at $11.50 per share for each $5 million drawn under facility. The Company
will only issue warrants to Mr. Lauder if loans are drawn on the facility.
RSL Communications, Ltd. is a facilities-based communications company that
provides a broad range of data and Internet, voice and value-added service
solutions primarily to small and medium sized businesses and residential
customers in selected markets around the globe. Through its subsidiary,
deltathree.com, RSL COM also owns and operates a privately managed Internet
Protocol telephone network with 71 points of presence in 36 countries. For
additional information on RSL Communications, Ltd. visit the website at
http://www.rslcom.com.
This press release contains forward-looking statements within the meaning of the
"Safe Harbor" provisions of the Private Securities Litigation Reform Act of
1995. These statements are based on management's current expectations or beliefs
and are subject to a number of risks and uncertainties that could cause actual
results to differ materially from those set forth in the forward looking
statements. For a detailed discussion of these cautionary statements, risk
factors and uncertainties please refer to the Company's filings with the
Securities and Exchange Commission.
SOURCE: RSL Communications, Ltd.
