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EXHIBIT 99.1
ALLIED RISER COMMUNICATIONS (ARC) WILL ISSUE $150 MILLION OF
CONVERTIBLE SUBORDINATED NOTES
DALLAS, June 22/PRNewswire/ -- Allied Riser Communications Corporation
(NASDAQ: ARCC) announced that it will issue $150 million 7 1/2% Convertible
Subordinated Notes due 2007. The initial purchaser has also exercised an option
to purchase an additional $50 million of notes to cover over-allotments.
The notes will be issued at 100% of the principal amount and sold to
qualified institutional buyers in reliance on Rule 144A under the Securities Act
of 1933. ARC anticipates that the offering will close on or about June 28, 2000.
The proceeds of the offering will be used for the construction of additional
in-building networks, for working capital and general corporate purposes,
including to fund operating losses, and for business acquisitions and
investments.
The notes are due June 15, 2007, and will be convertible, at the option
of the holder, into shares of ARC common stock, and accrue interest that will be
payable semiannually beginning December 15, 2000.
Neither the convertible subordinated notes nor the shares of common
stock issuable upon conversion have been registered under the Securities Act of
1933 and may not be offered or sold in the United States absent registration or
an exemption from registration.
This notice is not an offer to sell the securities described and Allied
Riser Communications is not soliciting offers to buy these securities.
ABOUT ALLIED RISER COMMUNICATIONS:
ARC provides very high speed, IP-based, "first-mile" communications
services to small and medium-sized businesses in major metropolitan areas in the
United States. ARC delivers services over fiber-optic networks that it designs,
constructs, owns and operates inside commercial office buildings. Over this
infrastructure, ARC offers ultra high-speed Internet access, enhanced conference
calling services, and other broadband data services and applications. ARC's
Internet access services provide a direct "always-on" connection to the Internet
at speeds more than six times faster than T-1 and DSL lines and up to 175 times
faster than standard dial-up service.
For more information about ARC, visit the company's web site at
www.arcbroadband.com.
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF
1995:
The statements contained in this release that are not historical facts
may be deemed to contain forward-looking statements, including but not limited
to statements regarding overall market demand for market acceptance of the
Company's services, the intention to deploy fiber-
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optic networks in additional buildings or markets and the timing and breadth of
penetration in each building or market. Actual results may differ materially
from those anticipated in any forward-looking statements as a result of certain
risks and uncertainties, including, without limitation, the intense competition
for the Company's service offerings, dependence on growth in demand for the
Company's services, ability to manage growth of our operations, the ability to
raise additional capital and other risks and uncertainties detailed in the
Company's Securities and Exchange Commission filings. Prospective investors are
cautioned not to place undue reliance on such forward-looking statements. The
Company disclaims any obligation to update any of the forward-looking statements
contained herein to reflect future events or developments.
SOURCE Allied Riser Communications Corporation
CONTACT: Joey D. Mooring, Sr. Manager, Corporate Communications of Allied Riser
Communications Corporation, 214-560-2357, or email, [email protected]/
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