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Global Crossing Receives FCC Approval for ST Telemedia to Increase Stake
Transaction is part of recapitalization plan announced in May.
Florham Park, N.J. - July 17, 2007 -- Global Crossing (NASDAQ: GLBC), a leading global IP solutions provider, today announced that the Federal Communications Commission has approved its petition for STT Crossing Ltd, a subsidiary of Singapore Technologies Telemedia Pte Ltd (ST Telemedia), to increase its equity and voting interests in Global Crossing to as much as 66.25 percent.
In connection with the establishment of the previously announced five-year, $350 million secured term loan facility, ST Telemedia agreed to convert its mandatorily convertible notes due December 2008 within 120 days of the closing of the initial tranche of the term loan. In connection with the conversion, ST Telemedia will receive common stock and warrants totaling approximately 16.58 million shares, plus $7.5 million in cash.
ABOUT GLOBAL CROSSING
Global Crossing (NASDAQ: GLBC) provides telecommunications solutions over the world's first integrated global IP-based network. Its core network connects more than 320 cities in 31 countries worldwide, and delivers services to more than 600 cities in 60 countries and 6 continents around the globe. The company's global sales and support model matches the network footprint and, like the network, delivers a consistent customer experience worldwide.
Global Crossing IP services are global in scale, linking the world's enterprises, governments and carriers with customers, employees and partners worldwide in a secure environment that is ideally suited for IP-based business applications, allowing e-commerce to thrive. The company offers a full range of data, voice and security products, to approximately 40 percent of the Fortune 500, as well as 700 carriers, mobile operators and ISPs. Its Professional Services and Managed Solutions provide VoIP, security and network consulting and management services to support its Global Crossing IP VPN service and Global Crossing VoIP services. Global Crossing was the first -- and remains the only -- global communications provider with IPv6 natively deployed in both its private and public backbone networks.
Please visit www.globalcrossing.com or blogs.globalcrossing.com for more information about Global Crossing.
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Statements in this press release about expected future events and financial results are forward-looking and subject to risks and uncertainties that could cause the actual results to differ materially, including risks referenced from time to time in the company's filings with the Securities and Exchange Commission. Global Crossing undertakes no duty to update information contained in this press release or in other public disclosures at any time.
CONTACT GLOBAL CROSSING:
Press Contact
Becky Yeamans
+ 1 973 937 0155
PR@globalcrossing.com
Analysts/Investors Contact
Laurinda Pang
+ 1 800 836 0342
glbc@globalcrossing.com
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