BUENOS AIRES, Argentina--(BUSINESS WIRE)--Dec. 29, 2003--Impsat Fiber Networks, Inc. ("Impsat" or the "Company"), a leading provider of integrated broadband data, Internet and voice telecommunications services in Latin America, announced the issuance of a Ps45 billion (US$16.1 million) bond.
The Company is pleased to announce the issuance by Impsat S.A., the Company's operating subsidiary in Colombia (Impsat Colombia), of a Ps45 billion (US$16.1 million) bond. The bond, which was issued at par on December 18, 2003, has a seven-year term. The coupon of the bond will bear CPI + 8% per annum, and interest will be payable quarterly in arrears. Principal will be payable in two installments of 50% each, the first at the end of the fifth anniversary of issuance and the second at the final maturity date. Duff & Phelps de Colombia granted this issue a AA+ credit rating.
The proceeds of the offering have been used to partially prepay a syndicated loan made to Impsat Colombia by a group of Colombian banks. The prepayment of such loan releases Impsat Colombia from certain financial restrictions and subjects it to more favorable financial covenants.
"This is an exceptional way to close this year," CEO Ricardo Verdaguer said. "This is our first attempt to raise money in the capital markets since our financial restructuring and the results were outstanding. To have successfully completed a seven-year term bond offering less than nine months after our emergence from Chapter 11 demonstrates the market's confidence in the Company's operational prospects. Further, this kind of achievement reinforces the efforts we have made towards strengthening the Company's capital structure."
The bond, which was oversubscribed, is listed on the Bolsa de Valores de Colombia (the Colombian stock exchange) and was offered and sold in Colombia to qualified investors in accordance with Regulation S under the U.S. Securities Act of 1933 (the "Securities Act"). The bond is not and will not be registered under the Securities Act or the securities laws of any state in the United States, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements under the Securities Act and any applicable state securities laws. This announcement does not constitute an offer to sell or the solicitation of an offer to buy any security and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offering would be unlawful.
Impsat Fiber Networks, Inc. is a leading provider of fully integrated broadband data, Internet and voice telecommunications services in Latin America. Impsat operates an extensive pan-Latin American high capacity broadband network in Brazil, Argentina, Chile and Colombia using advanced technologies, including IP/ATM switching, DWDM, and non-zero dispersion fiber optics. The Company has also deployed thirteen facilities to provide hosting services Impsat currently provides services to more than 2,700 national and multinational companies, government entities and wholesale services to carriers, ISPs and other service providers throughout the region. The Company has local operations in Argentina, Colombia, Venezuela, Ecuador, Brazil, the United States, Chile and Peru. Visit us at www.impsat.com.
