SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report January 26, 2000
(Date of earliest event reported) (January 25, 2000)
CTC COMMUNICATIONS GROUP, INC.
(Exact name of registrant as specified in its charter)
Delaware 0-27505 04-3469590
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
220 Bear Hill Rd., Waltham, Massachusetts 02451
(Address of principal executive offices) (Zip Code)
(781) 466-8080
(Registrant's telephone number including area code)
(Former name or former address if changed since last report)
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Item 5. Other Events
On January 25, 1999, the Registrant issued the following press release:
"CTC Communications Secures $225 Million Senior Secured
Facility Underwritten by TD Securities-USA
- - --Capital Infusion Funds CTC's Base Plan Expansion of both its Integrated
Communications Network and Branch Office Locations--
WALTHAM, Mass. Jan. 25, 2000-- CTC Communications (NASDAQ:CPTL)--a rapidly
expanding provider of state-of-the-art integrated communications solutions
for medium-to-large enterprises in the Northeast United States - today
announced that it has negotiated a $225 million senior secured credit
facility from TD Securities (USA) Inc., a subsidiary of The Toronto-Dominion
Bank, to fund it's base plan for expansion of both its branch sales offices
and the company's Cisco(R) Powered, broadband IP+ATM network, IntelliNET(SM).
TD Securities will be bookrunner for the $225 million senior secured
facility, which includes both term and revolver components. Proceeds will be
used to retire CTC's current $75 million senior credit facility as well as
provide working capital for CTC's branch sales office and network expansion.
The facility includes a $50 million senior secured 7 1/2 year revolving
credit facility, a $100 million senior secured 7 1/2 year delayed draw term
loan and a $75 million senior secured 8 year term loan. The entire $225
million is available to CTC immediately following closing, which is
anticipated to complete prior to the end of March, 2000.
"CTC's ongoing performance on numerous key measures - including EBITDA,
efficient use of capital, customer acquisition and retention, technology
deployment and intelligent build-out - underscores the Company's strong
capability to execute its plans and generate significant demand in the
marketplace," stated Ian Crowe, Vice Chairman of TD Securities. "TD
Securities is confident in CTC's strategy, management team and its ability to
continue its growth curve and cost effectively execute its plans."
Commented Robert Fabbricatore, CTC's Chairman and CEO, "Customer demand for
converged services on our IntelliNET(SM) network has been exceptional. This
TD Securities facility funds our base plan for branch and network expansion
as well as provides us with a solid financial foundation for executing
additional growth initiatives. As a starting point, we will immediately grow
the network coverage South to include Washington DC, as well as implement our
branch office expansion to cover this same geography. I am very pleased with
the financial support and confidence that Toronto Dominion has demonstrated
in CTC and its growth plan."
About CTC Communications
CTC is a rapidly growing, full-service Integrated Communications Provider
(ICP) delivering converged voice, data, Internet and video solutions to
medium and larger business customers in the most robust telecommunications
region in the world--the Washington D.C. to Boston corridor. Recently
designated by Bloomberg Personal Finance Magazine as one of the top "one
hundred fastest growing U.S. technology companies," CTC was serving more than
11,000 customers with 226,000+ access lines as of September 30, 1999. Central
to the Company's performance and future growth is its Cisco-powered IP+ATM
Integrated Communications Network (ICN) named IntelliNET(SM), which is
deployed across 8 contiguous northeast states.
CTC markets its full portfolio of services through its 375 member sales and
service representatives located in 28 branch offices throughout the New
England States, New York, New Jersey and Maryland. The Company, through its
dedicated commitment to exceptional customer service, has achieved an
industry-leading market share in the northeast and an industry-leading line
retention rate in excess of 99 percent. CTC can be found on the worldwide web
at www.ctcnet.com
The statements in this press release that relate to future plans, events or
performance are forward-looking statements that involve risk and
uncertainties that could cause actual results to differ materially from those
reflected in the forward-looking statements including the expansion of branch
offices and its IntelliNET and future growth initiatives. Readers are,
accordingly, cautioned not to place undue reliance on these forward-looking
statements, which speak only as to the date hereof. Additional information
about these risks and uncertainties is set forth in the Company's most recent
report on Form 10-Q. CTC undertakes no obligation to release publicly the
results of any revisions to these forward-looking statements that may be made
to reflect results, events or circumstances after the date hereof.
# # #
Contact: John Dinsmore John Pittenger
Feldman Communications Inc. CTC Communications
410-571-8900 (t) 781-466-1302 (t)
[email protected] (e) [email protected]
www.FeldmanCommunications.com www.ctcnet.com"
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
CTC COMMUNICATIONS GROUP, INC.
By: /s/ John D. Pittenger
John D. Pittenger,
Executive Vice President, Finance and Administration
Dated: January 26, 2000
