Mpower Holding Retires $48.9 Million in Debt
ROCHESTER, NY—November 26, 2002—Mpower Holding Corporation (AMEX:MPE), the parent company of Mpower Communications Corp., a provider of broadband high-speed Internet access and telephone services to business customers, announced today that it has repurchased $48.9 million of its $51 million outstanding 13% Senior Notes due 2004 for $13.7 million in cash. Pursuant to the terms of the 2004 Notes, Mpower intends to redeem the remaining $2.1 million of Notes following this transaction.
With the exception of $4 million in capital leases, this action, coupled with the intended redemption of the remaining 2004 Notes, would eliminate all of the company's remaining debt and will allow the company to remove liens on more than $100 million of its network equipment.
"We continue to pursue additional funding alternatives and are engaged in active negotiations with potential strategic partners," said Mpower Communications Chairman and Chief Executive Officer Rolla P. Huff. "Eliminating essentially all of our remaining debt is a crucial step in our efforts to consummate a value enhancing, strategic transaction and we expect that it will greatly accelerate that process."
About Mpower Holding Corporation
Mpower Holding Corporation (AMEX:MPE) is the parent company of Mpower Communications, a facilities-based broadband communications provider offering a full range of data, telephony, Internet access and Web hosting services for small and medium-size business customers. Further information about the company can be found at www.mpowercom.com.
Forward-Looking Statements
Under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, Mpower Holding Corporation cautions investors that certain statements contained in this press release that state management's intentions, hopes, beliefs, expectations or predictions of the future are forward-looking statements. Management wishes to caution the reader these forward-looking statements are not historical facts and are only estimates or predictions. Actual results may differ materially from those projected as a result of risks and uncertainties including, but not limited to, market makers independent decisions to create a market in the common stock of the company, future sales growth, market acceptance of our product offerings, our ability to secure adequate financing or equity capital to fund our operations, network expansion, our ability to manage rapid growth and maintain a high level of customer service, the performance of our network and equipment, our ability to enter into strategic alliances or transactions, the cooperation of incumbent local exchange carriers in provisioning lines and interconnecting our equipment, regulatory approval processes, changes in technology, price competition and other market conditions and risks detailed from time to time in our Securities and Exchange Commission filings. The company undertakes no obligation to update publicly any forward-looking statements, whether as a result of future events, new information, or otherwise.
