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Exhibit 99.1
BEACON CAPITAL PARTNERS, INC.
One Federal Street
Boston, Massachusetts 02110
Contact: Randy J. Parker FOR IMMEDIATE RELEASE
Chief Financial Officer
(617) 457-0400
CO SPACE TO BE ACQUIRED BY SEATTLE-BASED INTERNAP
TRANSACTION VALUED AT $244 MILLION
BOSTON, MA, June 1, 2000 -- Beacon Capital Partners, Inc. (BCP) announced today
that CO Space, Inc., a company in which Beacon Capital Partners and its
affiliates hold approximately an 18.2 percent interest, has signed a definitive
agreement to be acquired by InterNAP Network Services Corporation (Nasdaq:INAP)
in a stock transaction valued at approximately $244 million. The signing of the
agreement was announced by InterNAP on Tuesday, May 30, 2000.
Under the terms of the agreement, InterNAP common stock with an aggregate value
of approximately $244 million would be exchanged for all outstanding shares and
rights to acquire shares of CO Space's capital stock. The number of shares to be
issued is subject to a "collar" providing a maximum and minimum number of shares
of InterNAP common stock that would be issuable in the transaction of 8.8
million shares and 7.2 million shares, respectively. The consummation of the
transaction is conditioned on, among other things, the approval by CO Space
shareholders, as well as approval under the Hart-Scott-Rodino Antitrust
Improvements Act. We expect the transaction to be consummated during the third
quarter of 2000.
Beacon Capital Partners invested an aggregate of approximately $8 million in CO
Space in November 1999. In March 2000, Beacon Capital Partners distributed all
of the shares of CO Space preferred stock into a Voting Trust. The beneficiaries
of the Voting Trust are the shareholders and unitholders of Beacon Capital
Partners of record as of March 22, 2000. The distribution was treated as a
non-cash dividend from Beacon Capital Partners, valued at approximately $0.336
per share and unit. Each share of Beacon Capital Partners common stock received
approximately .2246 interests in the Voting Trust.
In conjunction with the acquisition of CO Space by InterNAP, each share of CO
Space preferred stock held in the Voting Trust will convert to one share of CO
Space common stock. The shares of CO Space common stock will be exchanged for
shares of InterNAP common stock based on a conversion fraction set forth in the
definitive agreement and subject to the collar. Assuming that all of the shares
of CO Space common stock, (including the shares held by the Voting Trust), are
exchanged for 7.750 million shares of InterNAP common stock, each unit in the
Voting Trust will represent approximately .2645 shares of InterNAP common stock
upon consummation of the acquisition. Beacon Capital Partners shareholders can
determine the number of shares of InterNAP common stock that they would
beneficially own through the Voting Trust (assuming
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the consummation of the acquisition and the exchange of all shares of CO Space
common stock for 7.750 million shares of InterNAP common stock) by multiplying
the number of shares of Beacon Capital Partners common stock held as of March
22, 2000 by .2246 and then multiplying that number by .2645. (For example: 1,000
shares of BCP x .2246 x .2645 = 59.4 shares of InterNAP). The exact exchange
ratio of shares will not be determined until the closing of the transaction.
Beacon Capital Partners shareholders are reminded that the shares of InterNAP
common stock that will be held by the Voting Trust are subject to the terms and
restrictions of the Voting Trust Agreement. The InterNAP shares have not been
distributed and are not available for trading. The Voting Trust is a separate
entity and does not trade with Beacon Capital Partners common stock. Information
on the sale of CO Space is under preparation and will be distributed to Beacon
Capital Partners shareholders shortly.
Beacon Capital Partners, acting in its capacity as trustee of the Voting Trust,
intends to vote in favor of the acquisition.
Assuming the acquisition is completed, CO Space will not proceed with the
initial public offering (IPO) that was filed with the Securities and Exchange
Commission on April 5, 2000.
ABOUT INTERNAP
Founded in 1996 in Seattle, InterNAP provides Internet connectivity that is
faster and more reliable than conventional Internet service. InterNAP's patented
route management technology provides direct data transmission across the major
Internet backbones through a single connection from a customer's network to one
of InterNAP's P-NAP facilities. InterNAP's customers bypass congestion points on
the Internet, avoiding packet loss, latency, and other difficulties that can
plague conventional Internet connectivity. InterNAP services are currently
available in numerous key markets throughout the United States including
Atlanta, Chicago, Los Angeles, New York, San Jose, and Seattle. Major companies
and networks served by InterNAP include Amazon.com, Datek Online, Go2Net, ITXC,
MindSpring, The Nasdaq, TheStreet.com, WebTV, and many others. InterNAP(R) and
P-NAP(R) are registered trademarks of InterNAP. For more information, visit
www.InterNAP.com.
CERTAIN MATTERS DISCUSSED IN THIS PRESS RELEASE MAY CONSTITUTE FORWARD-LOOKING
STATEMENTS WITHIN THE MEANING OF THE FEDERAL SECURITIES LAW. ALTHOUGH BEACON
CAPITAL PARTNERS, INC. BELIEVES THAT THE EXPECTATIONS REFLECTED IN SUCH
FORWARD-LOOKING STATEMENTS ARE BASED UPON REASONABLE ASSUMPTIONS, THE COMPANY
CAN GIVE NO ASSURANCE THAT ITS EXPECTATIONS WILL BE ACHIEVED. FACTORS THAT COULD
CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM CURRENT EXPECTATIONS INCLUDE
GENERAL ECONOMIC CONDITIONS, LOCAL REAL ESTATE CONDITIONS, TIMELY RELEASE OF
OCCUPIED SQUARE FOOTAGE UPON EXPIRATION, INTEREST RATES, AVAILABILITY OF EQUITY
AND DEBT FINANCING AND OTHER RISKS DETAILED FROM TIME TO TIME IN THE COMPANY'S
FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION. IN ADDITION, FACTORS THAT
COULD ALSO CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM CURRENT EXPECTATIONS
INCLUDE, BUT ARE NOT LIMITED TO, RISKS RELATING TO THE CONSUMMATION OF THE
CONTEMPLATED ACQUISITION, INCLUDING THE RISK THAT REQUIRED REGULATORY CLEARANCES
OR STOCKHOLDER APPROVALS MIGHT NOT BE OBTAINED IN A TIMELY MANNER OR AT ALL, AND
RISKS RELATED TO THE VOLATILITY OF STOCK PRICES FOR INTERNET COMPANIES AND THE
IMPACT OF MARKET CONDITIONS ON THE INTERNAP COMMON STOCK.
