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EXHIBIT 99.1
FOR IMMEDIATE RELEASE
USinternetworking, Inc. Obtains Commitments for Over $300 Million in Equity
Investment and Credit Facilities
MICROSOFT CORP., AETHER SYSTEMS, GE CAPITAL, ACQUA WELLINGTON AND EXISTING
INVESTORS ARE MAJOR PARTICIPANTS
ANNAPOLIS, MD, NOVEMBER 13, 2000 -- USinternetworking, Inc. (USi, Nasdaq: USIX),
the leading Application Service Provider, today announced that it has signed
commitments for over $300 million in equity and commercial credit facilities
from financial and strategic investors and lenders. Credit Suisse First Boston
Corporation (CSFB) assisted the Company in arranging the various financings.
"The signed agreements announced today, together with the natural growth in our
asset based credit lines, provide USi with the capital required to reach
cash-flow breakeven," said Andrew A. Stern, Chief Executive Officer of USi.
"These financial commitments, and the strategic alliances with Microsoft Corp.
and Aether Systems, serve to further USi's market-leadership position and
evidence the ongoing adoption of the ASP market as a whole."
The commitments announced today include:
- A $50 million strategic equity commitment from Microsoft Corp. as
part of the strategic alliance announced today between the two
companies. The commitment is contingent on regulatory approval under
the Hart-Scott-Rodino antitrust review process.
- A $10 million strategic equity commitment from Aether Systems, the
world leader in developing and implementing wireless solutions, as
part of the strategic alliance announced earlier today between the
two companies.
- A $60 million equity commitment by USi's early investors including
USi's Chairman of the Board, Christopher R. McCleary and its Chief
Executive Officer, Andrew A. Stern, and including a $5 million equity
commitment from a wholly owned subsidiary of GE Capital.
- A $50 million commitment on a three-year revolving line of credit led
by GE Capital. Closing on this commitment is contingent upon
finalizing the intercreditor agreements and other third party
documentation.
The equity commitments referred to above were approved by a special committee
composed of independent members of the Company's Board of Directors, and are
contingent upon customary conditions and upon receiving the full $50 million
equity investment from Microsoft Corp. The Company expects 25 percent of the
equity to close on or about November 20, 2000, with the remainder to close
subsequent to the Hart-Scott-Rodino approval. Closure on all commitments is
expected by year-end. The equity investors have agreed to purchase the common
stock at $3.40 per share, which represents a premium over the last reported sale
price of $3.25 per share on November 10, 2000. The equity investors will also
receive a warrant to purchase 0.35 shares of
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common stock at an exercise price of $4.08 per share for every share of common
stock they purchase in the financing.
The Company also announced today the closing of an equity financing arrangement
covering the sale of up to $140 million of the Company's common stock with Acqua
Wellington North American Equities Fund Ltd. (Acqua Wellington). The arrangement
provides the Company with availability of up to $140 million over the next 28
months. The Company may sell these shares at its sole discretion, depending upon
the Company's needs at the time. Shares will be sold at a slight discount, based
upon the market price of the Company's common stock. Additionally, the Company
has agreed to sell $10 million of common stock to Acqua Wellington at the price
of $3.198 per share pursuant to a purchase agreement entered into in connection
with the financing arrangement.
DETAILS CONCERNING THIS RELEASE WILL BE DISCUSSED IN A TELECONFERENCE CALL:
Date: Tuesday, November 14, 2000
Time: 8:00 a.m. (et)
Duration: 1 hour
Dial-in Number Domestic: 800-553-2173
Access Code: 860-914
A REPLAY OF THIS TELECONFERENCE CALL WILL BE AVAILABLE:
Date: November 14, 2000 - November 21, 2000
Start Date & Time: November 14, 2000, 1:00 p.m. (et)
Dial-in Number: 800-625-5288
Access Code: 860-914
ABOUT USINTERNETWORKING, INC.
USinternetworking Inc. (Nasdaq: USIX), a leading Application Service Provider
delivering e-commerce and enterprise software as a service. The company's iMAP
portfolio of service offerings delivers the rich functionality of leading
software from Ariba, BroadVision, Lawson, Microsoft, Oracle, PeopleSoft and
Siebel as a continuously supported, flat-rate monthly service via an advanced,
secure global data center network.
Internet Managed Application Provider, iMAP, AppHost, PriorityPeering, USiGSP,
USiSAN USiAccelerate, and Making Software Simple are service marks of
USinternetworking, Inc. All other trademarks are the property of their
respective owners. USi strategic partners and providers are publicly traded on
Nasdaq under the symbols: ARBA, BVSN, CSCO, MSFT,ORCL, PSFT and SEBL.
Information in this release may involve expectations, beliefs, plans, intentions
or strategies regarding the future. These forward-looking statements involve
risks and uncertainties. All forward-looking statements included in this release
are based upon information available to USinternetworking Inc. as of the date of
the release, and we assume no obligation to update any such forward-looking
statement. The statements in this release are not guarantees of future
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performance and actual results could differ materially from our current
expectations. Numerous factors could cause or contribute to such differences.
Some of the factors and risks associated with our business are discussed in the
Company's registration statement on Form S-3 declared effective by the
Securities and Exchange Commission ("SEC") on October 24, 2000, the Company's
Form 10-Q filed with the SEC on August 15, 2000, and in our other reports filed
from time to time with the SEC.
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Contacts:
USinternetworking, Inc.
Laura Taylor, Public Relations
[email protected]
410.897.3615
USinternetworking, Inc
Chris Walker
(410) 897-3560 [email protected]
