Net2000 Communications Closes $190 Million in New Financing

Apr 12, 2001, 01:00 ET from Net2000 Communications, Inc.

    HERNDON, Va., April 12 /PRNewswire/ -- Net2000 Communications, Inc.
 (Nasdaq: NTKK), a competitive provider of broadband telecommunications
 services with operations in over 20 markets, today said that the company
 closed agreements and received requisite approvals to obtain $190 million in
 additional financing, which is expected to fully fund Net2000's current
 business plan through cash flow positive in 2003 -- including network
 expansion in the company's current markets.
     As previously announced, the funding consists of a $65 million private
 equity placement of convertible preferred stock, under which Net2000 will
 issue 65,000 shares of its Series D convertible pay-in-kind preferred stock to
 new investors Boston Ventures and BancBoston Capital, as well as current
 Net2000 shareholders The Carlyle Group, PNC Equity Management and Nortel
 Networks.  In addition, Net2000 closed an agreement with TD Securities (USA)
 Inc., to increase by $125 million the funding available under an existing $200
 million senior secured credit facility, of which Net2000 has drawn $95 million
 to date.
     With approximately $230 million of remaining debt financing available
 today under the credit facility, $65 million in new equity, and approximately
 $26 million of the company's current cash-on-hand, Net2000's total available
 capital is approximately $321 million. Company officials said that this
 funding, together with projected positive cash flow in 2003, is expected to
 provide the company with adequate resources to fund its current business plan,
 including enhancements to its network in existing markets.
     Commenting on the company's completion of additional financing, Net2000
 CFO Don Clarke said,  "Our ability to raise $190 million in the midst of
 current market conditions is an extraordinarily positive event in the
 company's history and an endorsement of Net2000's staying power in the
 competitive local telecommunications market."
 
     About Net2000 Communications, Inc.
     Net2000, founded in 1993, is an innovative provider of broadband voice and
 data telecommunications services.  Net2000 provides businesses with quality
 local, long distance, data, interactive video and Internet services delivered
 over a single broadband connection and conveniently billed on a single
 invoice. The company currently operates sales offices in Atlanta, GA,
 Baltimore, MD, Boston, MA, Long Island, NY, New York, NY, Newark, NJ, Norfolk,
 VA, Philadelphia, PA, Providence, RI, Richmond, VA and Washington, DC.
     For more information about Net2000 Communications, Inc., please visit us
 at http://www.net2000.com .
 
     Under the safe harbor provisions of the Private Securities Litigation
 Reform Act of 1995, Net2000 cautions investors that any forward-looking
 statements or projections made by the company, including those that may be
 made in this press release, are based on management's expectations at the time
 they are made, but they are subject to risks and uncertainties that may cause
 actual results to differ materially from those projected. Net2000's future
 results may be impacted by factors such as technological changes, market
 acceptance of the company's existing and new services, Net2000's ability to
 deploy dark fiber rings and successfully expand its network, Net2000's ability
 to successfully integrate its acquisition of FreBon International Corporation,
 Vision I.T., and other companies it acquires, general economic conditions,
 regulatory and legislative developments, and competitive market pressures.
 Net2000's future results also may be impacted by other risk factors listed in
 its registration statement dated March 6, 2000 and periodic reports filed with
 the Securities and Exchange Commission. By making these forward-looking
 statements, Net2000 undertakes no obligation or intention to update these
 statements after the date of this release.
 
     CONTACT:  Media: Gerry A. Simone, 703-654-2900, or Investors: Bob Bannon,
 703-654-2222, both of Net2000 Communications, Inc.
 
 

SOURCE Net2000 Communications, Inc.
    HERNDON, Va., April 12 /PRNewswire/ -- Net2000 Communications, Inc.
 (Nasdaq: NTKK), a competitive provider of broadband telecommunications
 services with operations in over 20 markets, today said that the company
 closed agreements and received requisite approvals to obtain $190 million in
 additional financing, which is expected to fully fund Net2000's current
 business plan through cash flow positive in 2003 -- including network
 expansion in the company's current markets.
     As previously announced, the funding consists of a $65 million private
 equity placement of convertible preferred stock, under which Net2000 will
 issue 65,000 shares of its Series D convertible pay-in-kind preferred stock to
 new investors Boston Ventures and BancBoston Capital, as well as current
 Net2000 shareholders The Carlyle Group, PNC Equity Management and Nortel
 Networks.  In addition, Net2000 closed an agreement with TD Securities (USA)
 Inc., to increase by $125 million the funding available under an existing $200
 million senior secured credit facility, of which Net2000 has drawn $95 million
 to date.
     With approximately $230 million of remaining debt financing available
 today under the credit facility, $65 million in new equity, and approximately
 $26 million of the company's current cash-on-hand, Net2000's total available
 capital is approximately $321 million. Company officials said that this
 funding, together with projected positive cash flow in 2003, is expected to
 provide the company with adequate resources to fund its current business plan,
 including enhancements to its network in existing markets.
     Commenting on the company's completion of additional financing, Net2000
 CFO Don Clarke said,  "Our ability to raise $190 million in the midst of
 current market conditions is an extraordinarily positive event in the
 company's history and an endorsement of Net2000's staying power in the
 competitive local telecommunications market."
 
     About Net2000 Communications, Inc.
     Net2000, founded in 1993, is an innovative provider of broadband voice and
 data telecommunications services.  Net2000 provides businesses with quality
 local, long distance, data, interactive video and Internet services delivered
 over a single broadband connection and conveniently billed on a single
 invoice. The company currently operates sales offices in Atlanta, GA,
 Baltimore, MD, Boston, MA, Long Island, NY, New York, NY, Newark, NJ, Norfolk,
 VA, Philadelphia, PA, Providence, RI, Richmond, VA and Washington, DC.
     For more information about Net2000 Communications, Inc., please visit us
 at http://www.net2000.com .
 
     Under the safe harbor provisions of the Private Securities Litigation
 Reform Act of 1995, Net2000 cautions investors that any forward-looking
 statements or projections made by the company, including those that may be
 made in this press release, are based on management's expectations at the time
 they are made, but they are subject to risks and uncertainties that may cause
 actual results to differ materially from those projected. Net2000's future
 results may be impacted by factors such as technological changes, market
 acceptance of the company's existing and new services, Net2000's ability to
 deploy dark fiber rings and successfully expand its network, Net2000's ability
 to successfully integrate its acquisition of FreBon International Corporation,
 Vision I.T., and other companies it acquires, general economic conditions,
 regulatory and legislative developments, and competitive market pressures.
 Net2000's future results also may be impacted by other risk factors listed in
 its registration statement dated March 6, 2000 and periodic reports filed with
 the Securities and Exchange Commission. By making these forward-looking
 statements, Net2000 undertakes no obligation or intention to update these
 statements after the date of this release.
 
     CONTACT:  Media: Gerry A. Simone, 703-654-2900, or Investors: Bob Bannon,
 703-654-2222, both of Net2000 Communications, Inc.
 
 SOURCE  Net2000 Communications, Inc.