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EXHIBIT 99.1
e.spire(TM) AND SYNDICATED BANK GROUP ARE FINALIZING TERMS FOR AMENDED
AGREEMENT
HERNDON, VA, JULY 11, 2000 -- e.spire COMMUNICATIONS, INC. (NASDAQ: ESPI)
ANNOUNCED TODAY THAT IT AND ITS SYNDICATED BANK GROUP ARE FINALIZING TERMS
FOR A COMPREHENSIVE AMENDMENT TO ITS SENIOR SECURED CREDIT FACILITY, EXECUTED
IN AUGUST 1999. e.spire EXPECTS TO SIGN THE FINAL TERMS AND CONDITIONS BY
FRIDAY, JULY 14, 2000, WITH DOCUMENTATION TO BE COMPLETED SHORTLY THEREAFTER.
"WE ARE PUTTING THE FINAL TOUCHES ON THE TERMS FOR THE NEW AMENDMENT, WHICH IS
FAIR TO e.spire AND ASSURES OUR ABILITY TO MEET OUR NEW FINANCIAL AND
OPERATING COVENANTS," SAID GEORGE F. SCHMITT, e.spire CHAIRMAN AND ACTING CHIEF
EXECUTIVE OFFICER. "THE AMENDMENT WILL GIVE US SUBSTANTIAL FLEXIBILITY GOING
FORWARD TO MEET OUR GOALS AND FULFILL OUR BUSINESS PLAN."
e.spire EXPECTS TO REMAIN IN COMPLIANCE WITH ITS COVENANTS AND MEET ALL OF
ITS PAYMENT OBLIGATIONS UNDER THE SENIOR CREDIT FACILITY AS WELL AS THE
COMPANY'S OTHER INDEBTEDNESS.
"WE ARE SUFFICIENTLY CONFIDENT IN e.spire's FINANCES AND PROSPECTS THAT WE
EXPECT TO PREPAY $25 MILLION UNDER THE FACILITY BY THE END OF THE MONTH,"
ADDED SCHMITT. "THIS PREPAYMENT WILL REDUCE THE OVERALL COST OF THE AMENDED
FACILITY."
THE BANKS HAVE AGREED TO EXTEND THEIR STANDSTILL UNTIL JULY 14, THE DATE BY
WHICH THE COMPANY EXPECTS TO FINALIZE THE TERMS FOR THE AMENDMENT.
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 AND SYNDICATED BANK GROUP ARE FINALIZING
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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