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

Business Editors/High-Tech Writers


Microcell Telecommunications Inc. (TSX: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, 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 six-year C$50 million revolving credit 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, 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 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, 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 (PCS) and General Packet Radio Service (GPRS) under the Fido(R) brand name. Microcell has been a public company since October 15, 1997, and is listed on the Toronto Stock Exchange.

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.

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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Article Details
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Publication:Business Wire
Geographic Code:1CANA
Date:Mar 17, 2004
Previous Article:Crystallex Announces Equity Financing.
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