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Microcell Successfully Secures C$450 Million In Senior Secured Bank Financing.

Business Editors/High-Tech Writers


Microcell Telecommunications Inc. (TSX TSX Toronto Stock Exchange (TSE before April, 2002)
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:MT.A) (TSX:MT.B) today announced the successful closing of its previously announced C$450 million senior secured bank financing transaction for its wholly owned subsidiary Wholly Owned Subsidiary

A subsidiary whose parent company owns 100% of its common stock.

In other words, the parent company owns the company outright and there are no minority owners.
, Microcell Solutions Inc. ("Solutions").

The new facilities consist of a seven-year C$200 million first lien term loan, a seven-and-a-half-year C$200 million second lien term loan, and an undrawn un·draw  
tr.v. un·drew , un·drawn , un·draw·ing, un·draws
To draw to one side, as a curtain.

Adj. 1. undrawn - not represented in a drawing
undelineated - not represented accurately or precisely
 six-year C$50 million 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. The new financing solidifies the Company's capital structure by extending the first significant debt maturity from 2008 to 2011 at favourable terms and conditions. In addition, due to the positive response from lenders, which resulted in commitments being oversubscribed Refers to connecting more users to a system than can be fully supported if all of them were using it at the same time. Networks and servers are almost always designed with some amount of oversubscription, counting on the fact that everybody does not need the service simultaneously. , the Company may increase, at a later date, its first lien term loan facility or revolving credit facility by an additional C$25 million and its second lien term loan facility by an additional C$50 million.

The term loans are denominated in U.S. dollars and will be amortized with quarterly payments of principal and interest and, under certain circumstances, additional mandatory prepayments are required. The first lien term loan bears an interest rate of LIBOR LIBOR

See: London Interbank Offered Rate


See London interbank offered rate (LIBOR).
 plus 4%, while the second lien term loan bears an interest rate of LIBOR plus 7% which includes a LIBOR floor of 2%. The revolving credit facility is denominated in Canadian dollars and bears an interest rate of LIBOR plus 4%. The credit facilities are guaranteed by Microcell Telecommunications Inc., and are secured by a pledge on substantially all the assets of the Company.

The proceeds have been used mainly to repay all outstanding borrowings under the Company's previous bank credit facility in the amount of C$334 million. The new credit facilities have generated approximately C$80 million in incremental cash availability, which will provide for the continued investment in the Company's future growth initiatives through funding capital expenditures and associated working capital.

The facilities were arranged jointly by J.P. Morgan Securities Inc. and Credit Suisse First Boston Credit Suisse First Boston was originally the trading name of the Financière Crédit Suisse-First Boston, a London-based 50-50 investment banking joint venture formed in 1978 between the First Boston Corporation and Credit Suisse. , with J.P. Morgan acting as sole bookrunner and administrative agent and Credit Suisse First Boston acting as syndication agent.

About the Company

Microcell Telecommunications Inc. is a major provider, through its subsidiaries, of telecommunications services in Canada dedicated solely to wireless. Microcell offers a wide range of voice and high-speed data communications products and services to over 1.2 million customers. Microcell operates a GSM network across Canada and markets Personal Communications Services See PCS.  (PCS (1) (Personal Communications Services) Refers to wireless services that emerged after the U.S. government auctioned commercial licenses in 1994 and 1995. This radio spectrum in the 1. ) and General Packet Radio Service (GPRS (General Packet Radio Service) The first high-speed digital data service provided by cellular carriers that used the GSM technology. GPRS added a packet-switched channel to GSM, which uses dedicated, circuit-switched channels for voice conversations. ) under the Fido(R) brand name. Microcell has been a public company since October 15, 1997, and is listed on the Toronto Stock Exchange Toronto Stock Exchange (TSE)

Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options.

Note to Microcell Investors

The statements made in this release concerning Microcell's future prospects are forward-looking statements that involve risks and uncertainties, which may prevent expected future results from being achieved. For those statements, we claim the protection of the safe harbour for forward-looking statements contained in the securities laws. The Company cautions that actual future performance could be affected by a number of factors, including technological change, regulatory change, and competitive factors, many of which are beyond the Company's control. Therefore, future events and results may vary substantially from what the Company currently foresees. Additional information identifying risks and uncertainties is contained in the Company's Annual Information Form for 2002 and in other filings with securities commissions in Canada and the United States The United States and Canada share a unique legal relationship. U.S. law looks northward with a mixture of optimism and cooperation, viewing Canada as an integral part of U.S. economic and environmental policy. .

Reminder to holders of Class A Restricted Voting Shares and Class B Non-Voting Shares

The Company reminds the holders of its Class A Restricted Voting Shares and Class B Non-Voting Shares that (i) each Class A Restricted Voting Share may, at the option of the holder, be exchanged at any time for one Class B Non-Voting Share and (ii) each Class B Non-Voting Share may, at the option of the holder by providing a declaration of Canadian residency to the Company's transfer agent, be exchanged at any time for one Class A Restricted Voting Share.

Fido is a registered trademark of Microcell Solutions Inc.
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Publication:Business Wire
Geographic Code:1CANA
Date:Mar 17, 2004
Previous Article:Crystallex Announces Equity Financing.
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