Exhibit 99.1
UPC ANNOUNCES EUR 1.43 BILLION PRIVATE EQUITY FINANCING
AMSTERDAM, 12 September 2000 - United Pan-Europe
Communications N.V. (Amsterdam Stock Exchange (AEX): UPC;
NASDAQ: UPCOY) announced today that it has agreed to issue
EUR 1.43 billion (USD 1.24 billion) worth of convertible preference
shares for cash, to a group of investors including Motorola, Inc.,
Liberty Media Corporation, UnitedGlobalCom Inc., funds managed
by Capital Research and Management Company, and certain
discretionary clients of Alliance Capital.
This equity injection will strengthen UPC's balance sheet and further fund
the development and execution of the company's business plan. This equity
investment is a continuation of UPC's strategy to implement a long-term
financial structure.
Mark Schneider, CEO of UPC commented "We are delighted in this strong show
of support from a combination of industry and financial players that are
familiar with UPC's integrated strategy."
The convertible preference shares will be issued at a discount based on an
8% dividend yield and will be convertible into ordinary shares of UPC at a
price of EUR 35.455 ("Conversion Price"). In addition to the convertible
preference shares, these investors will receive warrants to purchase
ordinary shares of UPC at a premium of 20% to the Conversion Price. The
total number of warrants will equal 15% of the total purchase price divided
by the Conversion Price. If the convertible preference shares are not
converted or voluntarily redeemed by UPC after 12 years, UPC will be
required to redeem the convertible preference shares in either cash or
shares, at its option. Also, UPC can require the convertible preference
shares to be converted upon certain circumstances.
UPC, a consolidated subsidiary of UnitedGlobalCom, Inc. (NASDAQ: UCOMA),
owns and operates broadband communications networks in 17 countries in
Europe and in Israel. Headquartered in Amsterdam, UPC is one of the most
innovative broadband communications companies in Europe. UPC provides cable
television, telephony, high-speed internet access and programming services.
UPC completed an IPO in February 1999 and its shares are traded on the
Amsterdam Stock Exchange and NASDAQ ("UPCOY").
THE SECURITIES DESCRIBED IN THIS PRESS RELEASE HAVE NOT BEEN REGISTERED
UNDER THE US SECURITIES ACT OF 1933 OR UNDER ANY STATE SECURITIES LAWS AND,
UNLESS SO REGISTERED, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN
EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF SAID ACT AND THE APPLICABEL STATE SECURITIES LAWS. THIS
PRESS RELEASE SHALL NOT CONSTITUTE AN OFFER TO SELL OR THE SLICITATION OF AN
OFFER TO BUY NOR SHALL THERE BE ANY SALE OF THESE SECURITIES IN ANY STATE OR
OTHER JURISDICTION IN WHICH SUCH OFFER, SOLICITATION OR SALE WOULD BE
UNLAWFUL.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act
of 1995: Except for historical information contained herein, this news
release contains forward looking statements, which involve certain risks and
uncertainties that could cause actual results to differ materially from
those expressed or implied by these statements. These forward looking
statements include development of the business, availability of financing
and other statements concerning growth, as well as other factors detailed
from time to time in the companies' filings with the Securities and Exchange
Commission.
Contact:
Ruth Pirie
Director Investor Relations
tel: +44 207 518 7980
Bert Holtkamp
Director Corporate Communications
tel: +31 655 380594
