QWEST
RIDE THE LIGHT
[GRAPHIC LOGO OMITTED]
QWEST COMMUNICATIONS REACHES AGREEMENT
ON AMENDED CREDIT FACILITY,
announces NEW $750 MILLION LOAN
DENVER, September 4, 2002-- Qwest Communications International Inc. (NYSE: Q)
today announced it has reached a unanimous agreement with the 29 lenders in its
syndicated credit facility, to amend the company's $3.4 billion credit facility.
In addition, Qwest has completed a new $750 million term loan at the company's
QwestDex, Inc. subsidiary. Both agreements are effective immediately.
"We're very pleased to take these additional steps to strengthen the company's
financial position," said Oren Shaffer, Qwest vice chairman and CFO. "Coupled
with the pending sale of QwestDex, these actions announced today and the cash
flow from our operations should provide us with enough funding for the next
several years, and put any liquidity concerns behind us."
Under the amendment, the maturity of the bank facility has been extended from
May 2003 to May 2005, and the financial covenants have been relaxed, increasing
the maximum debt to consolidated EBITDA ratio from 4.0 at the end of 2002 to 6.0
throughout the term of the agreement. Qwest has pledged the stock of Qwest
Corporation as security for the existing facility, and granted secondary liens
on the stock and certain assets of QwestDex. Qwest is required to use a portion
of the proceeds from the sale of the first phase of QwestDex to pay down this
facility to $2 billion. At the time of completion of the second phase of the
QwestDex sale, the facility must be paid down to $1.25 billion. As previously
announced, the sale of QwestDex is subject to certain closing conditions.
The company's QwestDex subsidiary obtained a $750 million term loan due in 2004.
The loan is secured by a lien on the stock and certain assets of QwestDex, and a
secondary lien on Qwest Corporation stock. Qwest must pay down this facility by
the completion of the second phase of its sale of QwestDex, expected in 2003.
Banc of America Securities LLC, J.P. Morgan Securities Inc. and Wachovia
Securities, Inc. acted as joint book runners for the amended facility. Banc of
America Securities LLC acted as sole lead arranger and sole book runner for the
QwestDex term loan.
About Qwest
Qwest Communications International Inc. (NYSE: Q) is a leading provider of
voice, video and data services to more than 25 million customers. The company's
55,000 employees are committed to the "spirit of service" and providing
world-class services that exceed customers' expectations for quality, value and
reliability. For more information, please visit the Qwest Web site at
www.qwest.com.
# # #
This release may contain projections and other forward-looking statements that
involve assumptions, risks and uncertainties. Readers are cautioned not to place
undue reliance on these statements, which speak only as of the date of this
release. These statements may differ materially from actual future events or
results. Readers are referred to the documents filed by Qwest Communications
International Inc. (together with its affiliates, "Qwest", "we" or "us") with
the Securities and Exchange Commission (the "SEC"), specifically the most recent
reports which identify important risk factors that could cause actual results to
differ from those contained in the forward-looking statements, including but not
limited to: the duration and extent of the current economic downturn in our
14-state local service area, including its effect on our customers and
suppliers; the effects of our anticipated restatement of historical financial
statements including delays in or restrictions on our ability to access the
capital markets or other adverse effects to our business and financial position;
our substantial indebtedness, and our inability to complete any efforts de-lever
our balance sheet through asset sales of other transactions; any adverse outcome
of the SEC's current inquiries into Qwest's accounting policies, practices and
procedures; any adverse outcome of the current investigation by the U.S.
Attorney's office in Denver into certain matters relating to us; adverse results
of increased review and scrutiny by Congress, regulatory authorities, media and
others (including any internal analyses) of financial reporting issues and
practices or otherwise; the failure of our chief executive and chief financial
officers to provide certain certifications relating to certain public filings;
rapid and significant changes in technology and markets; failure to achieve the
projected synergies and financial results expected to result from the
acquisition of U S WEST, and difficulties in combining the operations of the
combined company; our future ability to provide interLATA services within our
14-state local service area; potential fluctuations in quarterly results;
volatility of Qwest's stock price; intense competition in the markets in which
we compete; changes in demand for our products and services; dependence on new
product development and acceleration of the deployment of advanced new services,
such as broadband data, wireless and video services, which could require
substantial expenditure of financial and other resources in excess of
contemplated levels; higher than anticipated employee levels, capital
expenditures and operating expenses; adverse changes in the regulatory or
legislative environment affecting our business; adverse developments in
commercial disputes or legal proceedings; and changes in the outcome of future
events from the assumed outcome included by Qwest in its significant accounting
policies. The information contained in this release is a statement of Qwest's
present intention, belief or expectation and is based upon, among other things,
the existing regulatory environment, industry conditions, market conditions and
prices, the economy in general and Qwest's assumptions. Qwest may change its
intention, belief or expectation, at any time and without notice, based upon any
changes in such factors, in Qwest's assumptions or otherwise. The cautionary
statements contained or referred to in this release should be considered in
connection with any subsequent written or oral forward looking statements that
Qwest or persons acting on its behalf may issue. This release may include
analysts' estimates and other information prepared by third parties for which
Qwest assumes no responsibility. Qwest undertakes no obligation to review or
confirm analysts' expectations or estimates or to release publicly any revisions
to any forward-looking statements to reflect events or circumstances after the
date hereof or to reflect the occurrence of unanticipated events.
The Qwest logo is a registered trademark of, and CyberCenter is a service mark
of, Qwest Communications International Inc. in the U.S. and certain other
countries.
Contacts: Media Contact: Investor Contact:
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Tyler Gronbach Stephanie Comfort
303-992-2155 800-567-7296
tyler.gronbach@qwest.com IR@qwest.com
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