Mpower Holding Initiates Redemption of Remaining Notes
Will Clear all Bondholder Debt from Balance Sheet
ROCHESTER, NY—December 5, 2002—Mpower Holding Corporation (AMEX:MPE, the parent company of Mpower Communications Corp., a provider of broadband high-speed Internet and telephone services to business customers, announced today that it intends to redeem all of the approximately $2.1 million principal amount remaining of its 13% Senior Secured Notes due 2004. HSBC Bank USA, the trustee under the indenture governing the Notes, will notify registered noteholders by mail that on January 3, 2003, pursuant to the terms of the Notes, Mpower will redeem the Notes at a redemption price of 103.25% of their principal amount.
On November 25, 2002, the company announced that it had repurchased approximately $48.9 million of the approximately $51 million outstanding 13% Senior Notes due 2004. With the action announced today, Mpower expects to be completely clear of noteholder debt, with only $4 million in capital leases remaining on the company's balance sheet.
"Essentially eliminating all of our debt puts us in a unique position in the telecommunications industry today and we believe is a critical prerequisite to attracting additional funding and pursuing strategic transactions," said Mpower Communications Chairman and Chief Executive Officer Rolla P. Huff.
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.
