Broadwing Corporation Announces $75.0 Million Senior Secured Revolving Credit Facility; Company Elects to Make Payments in Cash for Principal and Interest Due November 21, 2005 Under its Senior Convertible Notes.COLUMBIA, Md. -- Broadwing Corporation (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :BWNG), today announced that its subsidiary, Broadwing Communications, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control , has entered into a revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. facility that enables it to borrow up to $75.0 million from a group led by PNC PNC Purdue University North Central (Westville, Indiana) PnC Point 'n Click PNC Police National Computer PNC People's National Congress (Guyana) PNC People's National Congress Bank, National Association, and co-arranged by Jefferies Babson Finance. The credit facility, which has a final maturity date of October 14, 2008, is secured by a pledge of accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying of Broadwing Corporation and its U.S. subsidiaries. Borrowings under the facility will bear interest, at Broadwing's option, at a rate equal to either LIBOR LIBOR See: London Interbank Offered Rate LIBOR See London interbank offered rate (LIBOR). plus the applicable margin or an alternate base rate, defined as the higher of the prime or federal funds rate Federal Funds Rate The interest rate at which a depository institution lends immediately available funds (balances at the Federal Reserve) to another depository institution overnight. , plus margin. The Company said it intends to use borrowings under the revolving credit facility for general corporate purposes. In addition, Broadwing Corporation today provided notice to holders of its Senior Convertible Notes that, in accordance with the terms of the notes and the Securities Purchase Agreement dated February 9, 2004, the Company has elected to pay in cash both the interest of $810,716 and principal of $32,142,857 due on the notes on November 21, 2005. The Company borrowed $225.0 million under unsecured convertible notes in a private placement to institutional investors on February 19, 2004. Borrowings accrue interest at a rate of 5% payable quarterly, and principal is scheduled for repayment in seven equal quarterly installments that commenced on August 19, 2004. Under the terms of the agreement, the Company has the option to pay the quarterly principal and interest due on the convertible notes in either cash or in common stock at a conversion price of 95% of the average stock price for a period of 20 days preceding the conversion. For the first three installment payments Installment payments Distribution of plan assets to beneficiaries based upon a regular schedule. when principal was due, the Company elected to issue shares of common stock in payment of principal and interest on the convertible notes. For the last three principal and interest installment payments, the Company has elected to pay both principal and interest due on the convertible notes in cash. The board of directors will determine the composition of the final payment due February 20, 2006, after careful evaluation of a variety of factors, including the Company's capital needs and market conditions at the time. About Broadwing Corporation Broadwing Corporation, through its consolidated subsidiary Broadwing Communications, LLC, delivers innovative data, voice, and media solutions to enterprises, service providers, and government entities. Enabled by its one-of-a-kind, all-optical network and award-winning products and services, Broadwing Communications provides communications solutions with unparalleled customer focus and speed. For more information, visit www.broadwing.com. Broadwing and its logo are trademarks and/or service marks of Broadwing Communications, LLC, and/or Broadwing Corporation. All trademarks and service marks not belonging to Broadwing are the property of their respective owners. Investor Note Regarding Forward-Looking Statements Statements in this press release regarding Broadwing Corporation and/or Broadwing Communications, LLC (collectively "Broadwing"), that are not statements of historical fact may include forward-looking statements, and statements regarding Broadwing's beliefs, plans, expectations or intentions regarding the future are forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. All such forward-looking statements are made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Broadwing's actual results could differ materially from these statements. |
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