Covad Secures $50 Million Credit Facility; Redeems AT&T Liability and Plans to Withdraw Shelf Registration.SAN JOSE, Calif. -- Covad Communications Group, Inc. (AMEX AMEX See: American Stock Exchange :DVW DVW Deutscher Verein für Vermessungswesen eV (German Surveying Association) DVW Dynamic Virtual Worlds ), a leading national provider of integrated voice and data communications, today announced that it has obtained a two-year $50 million senior secured 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 with the Santa Clara, Calif. based Silicon Valley Bank. The credit facility is available for general corporate purposes. "We are pleased to establish this relationship with Silicon Valley Bank," said Christopher Dunn, Covad chief financial officer. "The availability of this credit facility validates Covad's commitment to improving its balance sheet liquidity and provides us with increased flexibility to refinance existing liabilities." As part of the transaction, Covad has redeemed its existing collateralized customer deposit liability with AT&T, one of Covad's largest wholesale partners. This liability has been terminated and AT&T has relinquished its related liens on Covad's assets. Covad plans to borrow funds available under the revolving credit facility as needed as needed prn. See prn order. . In conjunction with securing the credit facility, Covad also announced that it will withdraw the universal shelf registration statement it filed with the Securities and Exchange Commission in October 2005 without making any sales under that registration statement. About Covad Covad is a leading nationwide provider of integrated voice and data communications. The company offers DSL DSL in full Digital Subscriber Line Broadband digital communications connection that operates over standard copper telephone wires. It requires a DSL modem, which splits transmissions into two frequency bands: the lower frequencies for voice (ordinary , Voice Over IP, T1, Web hosting, managed security, IP and dial-up, wireless broadband, and bundled voice and data services directly through Covad's network and through Internet Service Providers Internet service provider (ISP) Company that provides Internet connections and services to individuals and organizations. For a monthly fee, ISPs provide computer users with a connection to their site (see data transmission), as well as a log-in name and password. , value-added resellers, telecommunications carriers and affinity groups to small and medium-sized businesses and home users. Covad broadband services are currently available across the nation in 44 states and 235 Metropolitan Statistical Areas (MSAs) and can be purchased by more than 57 million homes and businesses, which represent over 50 percent of all US homes and businesses. Corporate headquarters is located at 110 Rio Robles Robles is a common surname in the Spanish language meaning oaks, and may refer to:
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. Statement under 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: The foregoing contains "forward-looking statements" which are based on management's current information and beliefs as well as on a number of assumptions concerning future events made by management. Examples of forward-looking statements include expectations regarding Covad's use of the credit facility. Readers are cautioned not to put undue reliance on such forward-looking statements, which are not a guarantee of performance and are subject to a number of uncertainties and other factors, many of which are outside Covad's control that could cause actual results to differ materially from such statements. These risk factors include increasing competition in the market for broadband and wireless services, future changes in telecommunications regulations and litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. concerning current regulations, our ability to effectively offer wireless services, and our ability to increase the revenue that we obtain from our other services and maintain an efficient cost structure, among other risks. For a more detailed description of the risk factors that could cause such a difference, please see Covad's 10-K, 10-Q, 8-K and other filings with the Securities and Exchange Commission. Covad disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. This information is presented solely to provide additional information to further understand the results of Covad. |
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