360networks In Compliance On Bank Loans
Company issues release to address investor concerns

April 24, 2001 -- 360networks Inc. today took the unusual step of issuing a press release to state that it is in compliance on its bank loans and confident it can continue paying interest on schedule.
The company said it "is in full compliance with all covenants under the company's $1.2 billion senior secured credit facility ... (and) intends to meet interest payments under its debt obligations."
The network builder said it issued the statement "in response to a number of investor inquiries." It marked the second time in three trading sessions that an Internet infrastructure company had to issue a statement to address market rumors. On Friday, Level 3 Communications issued a press release to affirm its compliance with covenants on a senior credit facility.
"As a result of cash on hand, sales contracts with customers and credit facilities available to us, we are comfortable that we can meet such obligations,'' said Vanessa Wittman, chief financial officer of 360networks. "We recognize that these are difficult markets for all of us, but 360networks has always met its debt obligations and we are taking appropriate internal measures to ensure this will not change going forward.''
360networks said that as of the end of last year it had used just $350 million of the $1.2 billion credit line. "360networks is currently drawing on the balance, as needed, to complete the development of a global fiber optic network," the company said in its statement.
At 2 p.m., the company's shares were trading down 44 cents at $1.67, a loss of nearly 21 percent on the day.
360networks offers network services to telecommunications and data-centric organizations.