Global Crossing Reports Q1, Closes Impsat Acquisition, Recapitalization

Global Crossing reported $504 million of consolidated Q1 2007 revenue, an increase of $16 million or 3 percent from the fourth quarter, when consolidated revenue was $488 million. On a year-over-year basis, consolidated revenue expanded by 11 percent compared with the first quarter of 2006. The company said its core enterprise, carrier data and indirect channels segment, also referred to as its "invest and grow" segment, saw revenue increase by 9 percent sequentially to $381 million in the first quarter, compared with $351 million in the fourth quarter of 2006. The "invest and grow" segment improved 33 percent year over year, from $286 million in the first quarter of 2006.
Global Crossing's adjusted EBITDA less non-cash stock compensation ("adjusted cash EBITDA" was reported as a loss of $8 million. This compared to adjusted cash EBITDA of $12 million in the fourth quarter and an adjusted cash EBITDA loss of $33 million in the first quarter of last year.



Global Crossing completed its acquisition of IMPSAT Fiber Networks, Inc. (Impsat), a leading provider of integrated broadband data, Internet, voice telecommunications and advanced hosting in Latin America, for a total estimated transaction value of $347 million, comprised of approximately $95 million in equity, $26 million of assumed indebtedness and repayment of $226 million of indebtedness. Global Crossing said Impsat's extensive IP-based intercity network, 15 metropolitan networks and 15 advanced hosting centers will provide a greater breadth of services and coverage to its Latin American operations.



Global Crossing also announced that it had completed a five-year, $250 million secured term loan facility with Goldman Sachs and Credit Suisse as joint book runners, yielding net cash proceeds of $241 million. To facilitate the loan, a subsidiary of the company's majority shareowner, Singapore Technologies Telemedia (ST Telemedia), agreed to subordinate its mandatorily convertible notes due December, 2008 to the term loan and then to convert the notes into common stock and warrants.

http://www.globalcrossing.com

http://www.impsat.com