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EXHIBIT 99.2
CONTACT: Sandra Gonzalez-Levy
Terremark Worldwide Inc.
(305) 860-7829
[email protected]
Steven Schwadron/Alec Rosen
Edelman Public Relations
(305) 358-9500 (w)
(305) 527-4864
or 632-2003 (c)
[email protected]
[email protected]
TERREMARK WORLDWIDE SETS TERMS FOR PRIVATE PLACEMENT OF CONVERTIBLE DEBENTURES
MIAMI, FL - (November 28, 2000) -- Terremark Worldwide, Inc. (AMEX:TWW)
announced today the specific terms of its private placement of $100,000,000
(with the right of the Company to increase to $150,000,000) of subordinated
convertible debentures due December 31, 2005. Specifically, the Company stated
that:
o The debentures bear interest at 13% per annum.
o Each debenture is convertible (in multiples of $50,000) at a price
per share equal to 120% of the average market price of Terremark
common stock for the twenty (20) trading days preceding the date the
debenture is purchased. Shares issued upon conversion may not be
sold or transferred prior to December 31, 2001.
o The Company may prepay the debentures at any time on 15 days'
notice. During the notice period, the holder may convert to
Terremark common stock. Alternatively, upon prepayment, the Holder
may request repayment either: (i) at a premium (5% in 2001
decreasing to 0% in 2005); or (ii) at par with warrants to purchase
shares of Terremark common stock in an amount equal to 10% of the
principal repaid.
o The debentures may be called by the holder, with no premium or
warrants, during the month of January 2003. Conversion rights cease
on notice of election to call.
The Company proposes to use the net proceeds of the offering for its capital
needs, including, but not limited to, deploying and operating TerreNAP(SM) Data
Centers in Latin America and Asia.
None of the debentures that the Company is proposing to sell in the private
placement or the common stock into which they are convertible have been
registered under the Securities Act of 1933 (the "Act") and they may not be
offered or sold in the United States absent registration or an applicable
exemption from such registration. Offers will be made solely to either qualified
accredited investors pursuant to Regulation D under the Act or in offshore
transactions pursuant to Regulation S under the Act.
