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Exhibit 99.1
e.spire SECURES $125 MILLON IN EQUITY FINANCING; SIGNS AMENDED
AGREEMENT WITH SYNDICATED BANK GROUP
HERNDON, VA, SEPTEMBER 20, 2000-- e.spire Communications, Inc. (NASDAQ:
ESPI) announced that it has secured additional funding commitments, including
$50 million received today, that significantly strengthen its balance sheet.
Concurrently, e.spire has finalized an important loan agreement with its bank
group.
e.spire has signed commitment letters with the Huff Alternative Income
Fund, L.P., Greenwich Street Capital Partners II, L.P., and Honeywell
International Inc. Master Retirement Fund for a total of $125 million in equity
funding. The three groups, which have committed to purchases of approximately
$125 million of preferred stock pending shareholder approval, purchased $50
million of exchangeable preferred stock from e.spire today. A proxy soliciting
shareholder approval will be distributed shortly. When approval is received,
e.spire expects these three and other investors will purchase the remaining $75
million in preferred stock as funding is needed by the Company.
e.spire also announced that it and its syndicated bank group have signed
the final agreement amending its Senior Secured Credit Facility. e.spire will
repay $10 million of principal on the Credit Facility today, leaving a fully
drawn balance of $139 million outstanding.
"We are pleased with both of these developments. The infusion of equity
gives us additional financial stability and flexibility," said Bradley E.
Sparks, e.spire Chief Financial Officer. "It gives us sufficient capital to fund
our business plan well into the first quarter of next year, demonstrates to the
investment community that e.spire continues to have strong, committed financial
backers, and opens up new funding channels to us. And, importantly, as evidenced
by the new bank agreement, we have the ongoing support of our senior lenders."
"The signing of the bank agreement is a significant milestone for us,"
added George F. Schmitt, e.spire Chairman and Acting Chief Executive Officer.
"With this negotiation behind us, we can now turn our full attention to closing
other arrangements that will bring new investment to the company."
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e.spire SECURES $125 MILLON IN EQUITY FINANCING; SIGNS AMENDED AGREEMENT WITH
SYNDICATED BANK GROUP/Page 2
e.spire Communications, Inc. is a leading integrated communications
provider, offering traditional local and long distance, dedicated Internet
access and advanced data solutions,
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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.
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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