Global Crossing raises $404 million

Fiber Optics Weekly Update, Dec 31, 2004

Global Crossing announced the completion of a debt financing by the company's wholly owned subsidiary, Global Crossing (UK) Finance Plc ("GCUK Finance"). The approximately $404 million financing consists of $200 million of 10.75 percent U.S. dollar-denominated senior secured notes due in 2014 and 105 million pounds of 11.75 percent British pounds sterling-denominated senior secured notes due in 2014. The notes are guaranteed by Global Crossing's principal operating subsidiary in the United Kingdom, Global Crossing (UK) Telecommunications Limited ("GCUK"), and are secured by certain of GCUK's assets. The notes were sold at a discount resulting in aggregate gross proceeds of approximately $398 million (currency equivalent) before underwriting discounts.

"The debt financing, together with the North American accounts receivable facility that we anticipate putting in place in the first quarter of 2005 and previously announced recapitalization steps, is expected to result in our business plan being fully funded," commented John Legere, Global Crossing's chief executive officer.

The financing is part of Global Crossing Limited's ("GCL's") previously announced recapitalization plan. Pursuant to the recapitalization plan, the following actions took place:

* The GCUK Finance senior notes were issued and sold for gross proceeds of approximately $398 million.

* Funds transfers were initiated to repay $75 million principal amount (plus accrued interest) of the $200 million in senior notes previously issued by a U.S. subsidiary of Global Crossing to an affiliate of Singapore Technologies Telemedia Pte. Ltd. ("ST Telemedia").

* The remaining $125 million of senior notes and the $125 million bridge loan facility previously provided by an affiliate of ST Telemedia to GCUK were refinanced by $250 million principal amount of 4.7 percent payable-in-kind secured notes that will mandatorily convert into common equity of GCL after four years, or will convert earlier at ST Telemedia's option, into approximately 16.2 million shares of GCL's common stock (assuming conversion after four years), subject to certain adjustments.

In the first quarter of 2005, the company anticipates entering into a $50 million to $100 million working capital facility secured primarily by North American accounts receivable. The net proceeds from the GCUK Finance debt financing, together with such working capital facility, are expected to meet Global Crossing's long-term financing needs, until the company reaches cash flow breakeven.

For more information, please go to www.globalcrossing.com