EXHIBIT 99.2
Contact: For NEXTLINK Communications,Inc.
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Todd Wolfenbarger
703-547-2011
Noelle Beams
703-547-2002
For Forstmann Little
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George Sard/Anna Cordasco
Sard Verbinnen & Co.
212-687-8080
FORSTMANN LITTLE TO INVEST ADDITIONAL $400 MILLION IN NEXTLINK
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McLEAN, VA, AND NEW YORK, May 23, 2000 - NEXTLINK Communications Inc.
(Nasdaq: NXLK), one of the world's fastest growing providers of broadband
communications services, and Forstmann Little & Co., a leading private equity
firm, today announced the signing of a commitment letter under which Forstmann
Little will invest an additional $400 million in NEXTLINK to fund the Company's
business plan, to expand the Company's network and services, including its
domestic and international networks, and to introduce new technologies.
Forstmann Little will purchase $400 million of NEXTLINK convertible
preferred stock with a conversion price of $63.25 per share and a 3.75%
dividend. Last January, Forstmann Little invested $850 million in NEXTLINK
convertible preferred stock to expand its networks and services, introduce new
technologies and fund the Company's business plan. With this additional
investment, which is on substantially the same terms as the prior investment,
Forstmann Little's aggregate preferred equity will be convertible into
approximately 10% of NEXTLINK's fully diluted common shares before the pending
business combination of NEXTLINK and Concentric Network Corporation. The
transaction is subject to the parties negotiating and entering into definitive
agreements and customary closing conditions and is expected to be completed by
June 30, 2000.
NEXTLINK also announced today it has agreed in principle to purchase
multiple European metro fiber optic networks covering more than 80,000 metro
fiber miles, an inter-city Pan European fiber optic network covering more than
88,000 fiber miles and transatlantic fiber-optic capacity for $306 million. This
network expansion will approximately double NEXTLINK's market opportunity and
give it end-to-end network capabilities in the United States, Canada and
throughout much of Europe.
"We're pleased that Forstmann Little has chosen to increase their
investment in NEXTLINK's plan for delivering end-to-end broadband communications
services over our networks around the world," said NEXTLINK Chairman and Chief
Executive Officer Dan Akerson. "Forstmann Little brings a proven record of smart
long-term investing and a reputation as one of Wall Street's platinum investment
firms. NEXTLINK has already benefited significantly from both the firm's
presence on our Board of Directors and their financial commitments."
"NEXTLINK is a terrific company with strong management and excellent growth
prospects," said Nicholas Forstmann, a Forstmann Little general partner and
member of NEXTLINK's Board of Directors. "We are confident that NEXTLINK is well
positioned to take advantage of its many opportunities in both the United States
and in Europe."
NEXTLINK Communications, Inc. provides high quality, broadband
communications services to businesses over fiber optic and broadband wireless
facilities across the United States. NEXTLINK currently provides service in 49
markets. The company is the largest holder of broadband fixed wireless spectrum
in North America, with licenses covering 95 percent of the population in the top
30 markets in the United States. NEXTLINK plans to use wireless capabilities to
complement and extend the reach of its local fiber optic networks in the markets
in which NEXTLINK has spectrum.
Additionally, NEXTLINK has acquired exclusive rights throughout a 384,000
fiber-mile high-speed, IP-centric fiber optic backbone network that will connect
over 50 cities in the United States and Canada. NEXTLINK also has rights to an
empty conduit and additional fibers in this inter-city network. The network is
expected to be finished in 2001, with NEXTLINK turning on segments of the
network during 2000.
Through this unrivaled collection of facilities, NEXTLINK will provide
integrated, end-to-end telecommunications solutions to its customers in the
United States, Canada and Europe. For more information, visit
http://www.nextlink.com.
On January 10, 2000, NEXTLINK and Concentric Network Corporation announced
an agreement to combine the companies. The transaction is expected to close in
the second quarter of this year. Concentric provides complete Internet business
solutions for small- and medium-sized enterprises, including DSL access, Web
hosting and e-commerce. Concentric also offers data center services, virtual
private networks, dedicated access, and application infrastructure services for
delivering applications over the Internet or a virtual private network.
Since its founding in 1978, Forstmann Little has made 28 acquisitions and
significant equity investments, returning billions of dollars to its investors.
The firm's best-known investments include Gulfstream Aerospace, General
Instrument and Ziff-Davis Publishing. In addition to NEXTLINK, current
investments include McLeodUSA (NASDAQ: MCLD), one of the fastest-growing
integrated communications providers; Intelisys Electronic Commerce, a pioneer in
Internet-based business-to-business procurement solutions; Yankee Candle Company
(NYSE: YCC), the leading maker and marketer of premium candles; Community Health
Systems (NYSE:CYH), a leading rural hospital company; and Capella Education
Company, the for-profit parent company of Capella University, a leading
accredited, Internet-based university.
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The statements contained in this release that are not historical facts are
"forward-looking statements" (as such term is defined in the Private Securities
Litigation Reform Act of 1995). These statements include the timing of the
closing of the Forstmann Little & Co. investment and those describing NEXTLINK's
plans to offer new services using the planned European network and the expected
timing of the completion and availability of that network, as well as those
describing expectations concerning the timing and scope of the planned
deployment of broadband wireless and other products and services domestically
and internationally, and the timing and potential impact of the Concentric
transaction. Management wishes to caution the reader that these forward-looking
statements are only predictions and are subject to risks and uncertainties and
actual results may differ materially from those indicated in the forward-looking
statements as a result of a number of factors. These factors include, but are
not limited to, the ability of NEXTLINK and Forstmann Little & Co. and NEXTLINK
and Level 3, to negotiate and reach definitive agreements relating to the
respective transactions on satisfactory terms, NEXTLINK's ability to design and
construct fiber optic networks, install cable and facilities, including
switching electronics, to develop, install and provision LMDS equipment and
interconnect that equipment with NEXTLINK's fiber networks and connect the
networks, including LMDS equipment, to customers and on satisfactory terms and
conditions, and risks related to NEXTLINK's national network strategy.