Terremark Raises $25 Million; Restructures Ocean Bank Loan; and Converts CRG Debt.Business Editors/High-Tech Writers
MIAMI--(BUSINESS WIRE)--May 1, 2003
The Company Is Fully Funded And Expects To Reach Cash Flow Break
Even By End of Calendar Year
Terremark Worldwide, Inc. (AMEX AMEX
See: American Stock Exchange :TWW TWW The West Wing (TV show)
TWW The Wind Waker (Nintendo Zelda video game)
TWW Teaming with Wildlife
TWW Two-Week Wait
TWW The War Within (Transformers comics) ) the leading designer, builder and operator of integrated Tier-1 Network Access Points (NAPs) and provider of best-in-class network services, announced that it has: (i) Raised $25 million through the sale of subordinated secured debentures which are convertible into shares of its common stock at $0.50 per share; (ii) Issued to CRG CRG Centre for Research on Globalisation
CRG Council for Responsible Genetics
CRG Contingency Response Group
CRG Citizens for Responsible Government
CRG Corporate Renaissance Group
CRG Columbia River Gorge
CRG Consulting Resource Group
CRG Columbia Resource Group shares of its common stock at $0.75 each in exchange for $22.6 million in debt originally owed by the Company to Cupertino Electric and Kinetics kinetics: see dynamics.
Kinetics (classical mechanics)
That part of classical mechanics which deals with the relation between the motions of material bodies and the forces acting upon them. Systems, both of whom were construction contractors for the NAP (1) See network access protection.
(2) (Network Access Point) The first public Internet exchange points (IXPs). Established by the National Science Foundation in the early 1990s, they were set up to provide a standard way to exchange packets for of the Americas and (iii) Converted $15 million of the Company's debt to Ocean Bank at $0.75 per share and extended the term of the remaining $28.9 million until April 30, 2006.
"Over the past six months, Terremark has been working diligently to transform its financial standing," said Terremark's Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , Manuel D. Medina. "Today, we are proud to be able to publicly share the following results of these efforts - all of which are tremendous achievements in the present economic environment:
-- Terremark's balance sheet will improve substantially by virtue
of the conversion of $54 million in debt to equity at $0.75
per share and the elimination of approximately $5.2 million in
annual interest payments;
-- Based on our existing contracts, including those recently
announced with the U.S. Government and new enterprise
customers, and the strength of our sales pipeline, we expect
to achieve cash flow break even by the end of the calendar
-- The proceeds from these closings give the Company sufficient
liquidity to fully fund operations through projected cash flow
About Terremark Worldwide, Inc.
Terremark Worldwide Inc. (AMEX:TWW) is a leading designer, builder and operator of integrated Tier-1 Network Access Points (NAPs) and best-in-class data centers, creating technology marketplaces in strategic global locations. Terremark is the owner and operator of the NAP of the Americas, the 5th Tier-1 Network Access Point in the world and the model for TerreNAP(sm) Data Centers the company is deploying in Sao Paulo, Brazil (NAP do Brasil) Madrid, Spain (NAP de las Americas - Madrid) and other emerging markets. The carrier-neutral NAP of the Americas is a state-of-the-art facility providing interconnection between global carriers, ISPs and others, as well as connecting fiber networks in Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. , Europe, Asia and Africa to those in the U.S. Terremark is headquartered at 2601 S. Bayshore Drive, 9th Floor, Miami, Florida “Miami” redirects here. For the Native American tribe, see Miami tribe.
Miami is a major city in southeastern Florida, in the United States. It is the county seat of Miami-Dade County. Miami is a gamma world city with an estimated population of 404,048. USA, 305/856-3200. More information about Terremark Worldwide can be found at http://www.terremark.com.
Statements contained in this press release may constitute "forward-looking statements forward-looking statement
A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " within the meaning 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. Terremark's actual results may differ materially from those set forth in the forward-looking statements due to a number of risks, uncertainties and other factors, as discussed in Terremark's filings with the SEC. These factors include, without limitation, Terremark's ability to obtain funding for its business plans, uncertainty in the demand for Terremark's services or products and Terremark's ability to manage its growth. Terremark does not assume any obligation to update these forward-looking statements.