KMC Announces Additional Data Services Contract Monetization

Apr 03, 2001, 01:00 ET from KMC Telecom Holdings, Inc.

    BEDMINSTER, N.J., April 3 /PRNewswire/ -- KMC Telecom Holdings, Inc.
 (KMC), a fiber-based integrated communications provider, today announced that
 it has successfully monetized a portion of the future cash flows from a
 significant data services contract.  This monetization is in addition to the
 previous monetization announced by KMC late last week.  These two transactions
 generated an aggregate of $550 million of gross proceeds, which after taking
 into consideration the repayment of the previous financing and the payment of
 fees and expenses, netted KMC approximately $240 million.
     CEO William F. Lenahan said, "Building on the announcement of our prior
 monetization last week, KMC has extended its liquidity position, which allows
 us to capitalize on our investments in Tier III cities and national data
 platforms and grow these core businesses to their full potential.  KMC
 continues to meet all of our stated business metrics and financial guidance."
 
     About KMC Telecom:
     KMC Telecom is a fiber-based integrated communications provider offering
 data, voice and Internet infrastructure services to businesses, governments
 and institutional end-users, Internet service providers, long distance
 carriers and wireless service providers.  KMC's business has two distinct
 components:  serving communications-intensive customers in markets with
 populations between 100,000 and 750,000, referred to as Tier III markets, and
 providing data services on a nationwide basis.
 
     Certain matters discussed in this release are forward-looking statements
 that involve risks and uncertainties.  These forward-looking statements are
 based on all information currently available to the Company and subject to a
 number of risks, uncertainties and other factors that could cause the
 Company's actual results, performance, prospects or opportunities to differ
 materially from those expressed in, or implied by, these forward-looking
 statements.  These risks, uncertainties and other factors include matters
 related to: operations and prospects, expected financial position, funding
 needs and financing sources, the possibility that the Company may not be able
 to comply with financial covenants under its amended senior secured credit
 facility, the possibility that the Company may not be able to amend that
 facility, network construction and development plans, the ability of Tier III
 markets to profitably support one or more competitive telecommunications
 companies, regulatory matters, expected competitors in its markets and other
 risks and uncertainties including those detailed in filings with the
 Securities and Exchange Commission.  The Company undertakes no duty to update
 such forward-looking statements.
 
 

SOURCE KMC Telecom Holdings, Inc.
    BEDMINSTER, N.J., April 3 /PRNewswire/ -- KMC Telecom Holdings, Inc.
 (KMC), a fiber-based integrated communications provider, today announced that
 it has successfully monetized a portion of the future cash flows from a
 significant data services contract.  This monetization is in addition to the
 previous monetization announced by KMC late last week.  These two transactions
 generated an aggregate of $550 million of gross proceeds, which after taking
 into consideration the repayment of the previous financing and the payment of
 fees and expenses, netted KMC approximately $240 million.
     CEO William F. Lenahan said, "Building on the announcement of our prior
 monetization last week, KMC has extended its liquidity position, which allows
 us to capitalize on our investments in Tier III cities and national data
 platforms and grow these core businesses to their full potential.  KMC
 continues to meet all of our stated business metrics and financial guidance."
 
     About KMC Telecom:
     KMC Telecom is a fiber-based integrated communications provider offering
 data, voice and Internet infrastructure services to businesses, governments
 and institutional end-users, Internet service providers, long distance
 carriers and wireless service providers.  KMC's business has two distinct
 components:  serving communications-intensive customers in markets with
 populations between 100,000 and 750,000, referred to as Tier III markets, and
 providing data services on a nationwide basis.
 
     Certain matters discussed in this release are forward-looking statements
 that involve risks and uncertainties.  These forward-looking statements are
 based on all information currently available to the Company and subject to a
 number of risks, uncertainties and other factors that could cause the
 Company's actual results, performance, prospects or opportunities to differ
 materially from those expressed in, or implied by, these forward-looking
 statements.  These risks, uncertainties and other factors include matters
 related to: operations and prospects, expected financial position, funding
 needs and financing sources, the possibility that the Company may not be able
 to comply with financial covenants under its amended senior secured credit
 facility, the possibility that the Company may not be able to amend that
 facility, network construction and development plans, the ability of Tier III
 markets to profitably support one or more competitive telecommunications
 companies, regulatory matters, expected competitors in its markets and other
 risks and uncertainties including those detailed in filings with the
 Securities and Exchange Commission.  The Company undertakes no duty to update
 such forward-looking statements.
 
 SOURCE  KMC Telecom Holdings, Inc.