BTI Telecom Closes $90 Million Financing From Welsh, Carson, Anderson & Stowe

Recent Financing Fully Funds Business Plan



Apr 02, 2001, 01:00 ET from BTI Telecom Corp.

    RALEIGH, N.C., April 2 /PRNewswire/ -- BTI Telecom Corp. (BTI), a leading
 facilities-based integrated communications provider (ICP) in the southeastern
 United States, today reported that it closed a previously announced
 $90 million financing commitment from Welsh, Carson, Anderson and Stowe
 (WCAS).
     As announced on March 15, the new investment consists of $40 million in
 equity financing and $50 million in debt financing.  This latest round of
 financing is in addition to WCAS's December 1999 investment of $200 million
 and $10 million investment in January 2001.  In addition to the WCAS
 financing, BTI also reported that it closed on the transactions with GE
 Capital Corp, Bank of America and Export Development Corporation to refinance
 and extend $89 million in existing credit facilities.
     The WCAS investment and the credit facility fully fund BTI's current
 business plan.  BTI plans to use the financing to support sales growth and for
 general working capital purposes.
     "We continue to be pleased with our partnership with BTI," said Thomas E.
 McInerney, a WCAS General Partner and BTI director.  "The Company executed on
 its local and data strategies during 2000 and completed a network
 infrastructure build-out.  With its high-quality suite of advanced voice and
 data products and a strong, localized sales force, we believe BTI has a
 significant market opportunity to aggressively grow its business in the
 Southeast."
     CEO and Chairman Peter T. Loftin said, "Securing this additional financing
 and fully funding our business in these difficult and challenging market
 conditions, we believe, underscores the fundamental strength of our
 operations.  With the recent completion of our network build-out and a
 strategic partnership with a leading investment group, we can now focus our
 efforts on generating new sales, enhancing our existing customer relationships
 and adding to our bundled product offerings."
 
     About BTI Telecom
     BTI (http://www.btitele.com ) was founded in 1983 and is a leading
 facilities-based integrated communications provider (ICP) serving primarily
 small and medium-sized business customers in the southeastern United States.
 The Company offers a full suite of integrated retail services to business
 customers, including local, long distance, data, Internet access, frame relay,
 paging, Web design and hosting, and other enhanced services.  The Company also
 offers wholesale services, including switched, private line, special access
 and prepaid calling card services to other telecommunications carriers and
 end-user customers.  BTI has five Alcatel USA 600E digital long distance
 switches which are in Raleigh, Atlanta, Orlando, Dallas and New York.  BTI has
 also deployed 14 Lucent 5E 2000 local switches throughout the Southeast.
 BTI's fiber network covers approximately 4,300 route miles across the eastern
 United States.
 
     Forward-Looking Statements
     Statements contained in this news release regarding anticipated sales
 growth and market opportunity and other events are forward-looking statements,
 subject to uncertainties and risks, including but not limited to the Company's
 negative cash flow after capital expenditures, significant near-term capital
 requirements, restrictions on the ability to execute strategies or complete
 certain transactions as a result of its capital structure or debt covenants,
 ability to manage growth and expansion (including into the local services
 market), regulation, competition and dependence on key personnel.  These and
 other applicable risks are detailed in Company's filings with the Securities
 and Exchange Commission.
 
 

SOURCE BTI Telecom Corp.
    RALEIGH, N.C., April 2 /PRNewswire/ -- BTI Telecom Corp. (BTI), a leading
 facilities-based integrated communications provider (ICP) in the southeastern
 United States, today reported that it closed a previously announced
 $90 million financing commitment from Welsh, Carson, Anderson and Stowe
 (WCAS).
     As announced on March 15, the new investment consists of $40 million in
 equity financing and $50 million in debt financing.  This latest round of
 financing is in addition to WCAS's December 1999 investment of $200 million
 and $10 million investment in January 2001.  In addition to the WCAS
 financing, BTI also reported that it closed on the transactions with GE
 Capital Corp, Bank of America and Export Development Corporation to refinance
 and extend $89 million in existing credit facilities.
     The WCAS investment and the credit facility fully fund BTI's current
 business plan.  BTI plans to use the financing to support sales growth and for
 general working capital purposes.
     "We continue to be pleased with our partnership with BTI," said Thomas E.
 McInerney, a WCAS General Partner and BTI director.  "The Company executed on
 its local and data strategies during 2000 and completed a network
 infrastructure build-out.  With its high-quality suite of advanced voice and
 data products and a strong, localized sales force, we believe BTI has a
 significant market opportunity to aggressively grow its business in the
 Southeast."
     CEO and Chairman Peter T. Loftin said, "Securing this additional financing
 and fully funding our business in these difficult and challenging market
 conditions, we believe, underscores the fundamental strength of our
 operations.  With the recent completion of our network build-out and a
 strategic partnership with a leading investment group, we can now focus our
 efforts on generating new sales, enhancing our existing customer relationships
 and adding to our bundled product offerings."
 
     About BTI Telecom
     BTI (http://www.btitele.com ) was founded in 1983 and is a leading
 facilities-based integrated communications provider (ICP) serving primarily
 small and medium-sized business customers in the southeastern United States.
 The Company offers a full suite of integrated retail services to business
 customers, including local, long distance, data, Internet access, frame relay,
 paging, Web design and hosting, and other enhanced services.  The Company also
 offers wholesale services, including switched, private line, special access
 and prepaid calling card services to other telecommunications carriers and
 end-user customers.  BTI has five Alcatel USA 600E digital long distance
 switches which are in Raleigh, Atlanta, Orlando, Dallas and New York.  BTI has
 also deployed 14 Lucent 5E 2000 local switches throughout the Southeast.
 BTI's fiber network covers approximately 4,300 route miles across the eastern
 United States.
 
     Forward-Looking Statements
     Statements contained in this news release regarding anticipated sales
 growth and market opportunity and other events are forward-looking statements,
 subject to uncertainties and risks, including but not limited to the Company's
 negative cash flow after capital expenditures, significant near-term capital
 requirements, restrictions on the ability to execute strategies or complete
 certain transactions as a result of its capital structure or debt covenants,
 ability to manage growth and expansion (including into the local services
 market), regulation, competition and dependence on key personnel.  These and
 other applicable risks are detailed in Company's filings with the Securities
 and Exchange Commission.
 
 SOURCE  BTI Telecom Corp.