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Exhibit 99.2
e.spire(TM) AND syndicated bank group SIGN terms for amendED Agreement
HERNDON, VA, JULY 14, 2000 -- e.spire COMMUNICATIONS, INC. (NASDAQ: ESPI)
ANNOUNCED TODAY THAT IT AND ITS SYNDICATED BANK GROUP HAVE SIGNED THE FINAL
TERMS FOR AN AMENDMENT TO ITS SENIOR SECURED CREDIT FACILITY, EXECUTED IN
AUGUST 1999. e.spire EXPECTS TO PREPARE THE DOCUMENTATION, COMPLETING THE
AMENDMENT, IN THE NEXT FEW WEEKS, AT WHICH TIME THE SPECIFIC TERMS WILL BE
MADE PUBLIC.
INGENERAL, e.spire WILL PAY A .5 PERCENT POINT INCREASE IN INTEREST RATES
IN EXCHANGE FOR MODIFIED FINANCIAL PERFORMANCE CRITERIA THAT GIVE e.spire THE
FLEXIBILITY TO ACHIEVE ITS FINANCIAL AND BUSINESS OBJECTIVES.
IN CONNECTION WITH AGREEING TO THE TERMS, e.spire WILL PAY $15 MILLION TODAY
ON THE FACILITY'S PRINCIPAL AND $10 MILLION AT THE FINAL CLOSING.
"WE ARE VERY PLEASED TO HAVE THESE NEW TERMS IN PLACE," SAID BRADLEY E. SPARKS,
e.spire CHIEF FINANCIAL OFFICER. "THEY GIVE US ATTAINABLE REVENUE AND EBITDA
TARGETS AND RELIEVE US OF FUTURE WORRIES ABOUT OUR COVENANTS WITH THE BANKS."
"IAM CONFIDENT THAT WE WILL MEET OUR COMMITMENTS OUTLINED IN THE TERM
SHEET," ADDED GEORGE F. SCHMITT, e.spire CHAIRMAN AND ACTING CHIEF
EXECUTIVE OFFICER. "WE CAN NOW FOCUS ON GROWING OUR TELECOMMUNICATIONS
BUSINESS."
e.spire Communications, Inc. is a leading integrated communications provider,
offering traditional local and long distance, dedicated Internet access and
advanced data solutions, such as ATM and frame relay. e.spire also provides
dial-up Internet through its wholly-owned Internet service provider (ISP),
CyberGate, Inc., and Web hosting services through CyberGate's subsidiary,
ValueWeb. In addition, ACSI Network Technologies, Inc., another e.spire
subsidiary, provides third parties, including other communications concerns,
municipalities and corporations, with turnkey fiber-optic design, construction
and project management expertise. More information about e.spire is available
on e.spire's Web site, www.espire.net.
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e.spire(TM) AND SYNDICATED BANK GROUP SIGN TERMS FOR AMENDED
AGREEMENT/PAGE 2
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Certain statements regarding the development of the Company's businesses, the
markets for the Company's services and products, the Company's anticipated
capital expenditures, anticipated EBITDA and other statements are
forward-looking statements (as such term is defined in the Private Securities
Litigation Reform Act of 1995) which can be identified as any statement that
does not relate strictly to historical or current facts. Forward-looking
statements use such words as plans, expects, will, will likely result, are
expected to, will continue, is anticipated, estimate, project, believes,
anticipates, intends and expects, may, should, continue, seek, could and other
similar expressions. Although the Company believes that its expectations are
based on reasonable assumptions, it can give no assurance that its expectations
will be achieved. The important factors that could cause actual results to
differ materially from those in the forward-looking statements herein (the
"Cautionary Statements") include, without limitation, the Company's degree of
financial leverage, risks associated with debt service requirements and interest
rate fluctuations, risks associated with acquisitions and the integration
thereof, the impact of restriction under the Company's financial instruments,
dependence on availability of transmission facilities, regulation risks
including the impact of the Telecommunications Act of 1996, contingent
liabilities, the impact of competitive services and pricing, the ability of the
Company to successfully implement its strategies, as well as the other risks
referenced from time to time in the Company's filings with the SEC, including
the Company's Form 10-K for the year ended December 31, 1999. All subsequent
written and oral forward-looking statements attributable to the Company or
persons acting on its behalf are expressly qualified in their entirety by the
Cautionary Statements. The Company does not undertake any obligation to release
publicly any revisions to such forward-looking statements to reflect events or
circumstances after the date hereof or to reflect the occurrence of
unanticipated events.
Contact:
Media Relations
Peggy Disney
703.639.6738
[email protected]
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