Contact: Troy D'Ambrosio
Convergence Communications, Inc.
(801) 328-5618
tdambrosio@convergence-comm.net
CONVERGENCE COMMUNICATIONS, INC., SECURES TOTAL FINANCING OF
$109.5 MILLION IN PRIVATE EQUITY AND CREDIT FACILITIES
-- U.S. Provider of High-Speed Broadband Services to Latin America
Will Fund Further Infrastructure Enhancements in the Region--
December 6, 1999 - Salt Lake City, Utah - Convergence Communications, Inc., a
leading facilities-based operator of broadband telecommunications networks in
Latin America, announced today that it has secured $109.5 million of private
equity and credit facilities ($83.5 million of private equity and a credit
facility of $26 million). An investor group consisting of Telematica EDC, C.A.,
TCW/Latin America Partners, LLC, FondElec Essential Services Growth Fund, L.P.,
Internexus S.A., the International Finance Corporation and Glacier Latin-America
LTD., participated in this round.
"We are very pleased to have assembled a group of investors that provide the
Company both the capital resources as well as regional and industry knowledge to
continue building Latin America's leading broadband telecommunications company,"
said Lance D'Ambrosio, Chairman and Chief Executive Officer. "This round of
financing will allow the Company to aggressively add customers in our operating
markets and expand the networks to additional markets."
ING Barings managed the private placement and serves as a financial advisor to
the Company.
About Telematica EDC, C.A.:
Telematica EDC is a private company which focuses in the telecommunication
business (data transmission and mobile communication). Telematica EDC is a
subsidiary of Corporacion EDC, C.A. ("CEDC"). CEDC is one of Latin America's
premier companies and concentrates its activities in electricity (Generation,
Transmission and Distribution), telecommunications, water and gas businesses in
the Andean region and Central America.
About TCW/Latin America Partners, LLC:
TCW/Latin America Partners is a private equity fund, which focuses on
investments in Latin America and is affiliated with the TCW Group. Founded in
1971, the TCW Group of companies, including Trust Company of the West, manages
approximately $55 billion in assets for many of America's largest corporate,
public and union pension plans, charitable foundations, endowments and financial
institutions. Headquartered in Los Angeles, California, TCW also maintains
offices in San Francisco, Houston, New York, Hong Kong and London.
About FondElec Essential Services Growth Fund:
The FondElec Essential Services Growth Fund L.P. is managed by the FondElec
Group, a private equity investment firm founded in 1992 to capitalize on the
growth of worldwide emerging market electricity, gas, water and wireless
communications businesses. The FondElec Group has closed over $570 million of
infrastructure investments in emerging markets for funds under management and
co-investors. Investors in the FondElec Essential Services Growth Fund includes
affiliates of CMS Energy Inc., Tomen Corp., the InterAmerican Investment
affiliate of the InterAmerican Development Bank and Bayernwerk, A.G.
-more-
Convergence Communications /2
About Internexus, S.A.:
Internexus S.A. is a company in Argentina funded by private capital with the
purpose to invest in leading edge technologies.
About the International Finance Corporation:
IFC is the largest multilateral source of loan and equity financing for private
sector projects in the developing world. IFC finances and provides advice for
private sector ventures and projects in developing countries in partnership with
private investors. Since its founding in 1956, IFC has committed more than USD
$21.2 billion in financing for its own account and has arranged USD $15 billion
in syndication and underwriting for 1,852 companies in 129 developing countries.
About Glacier Latin-America LTD.:
Glacier Latin America Ltd., is a private equity fund dedicated to investing in
the Andean Region, Central America and Mexico. The Fund seeks investment
opportunities in companies that require growth capital and experienced
management support to expand in the region. Glacier's management team is
comprised of hand-on proven entrepreneurs who have a long-standing track record
of creating and managing their own portfolio of highly successful ventures. The
Fund has invested in the telecommunications, entertainment, education and quick
service restaurants industries.
About Convergence Communications, Inc.:
Convergence Communications, Inc., is a leading facilities-based,
telecommunications company which owns and operates IP-based, broadband
metropolitan area networks. The Company offers a "one-stop" menu of
telecommunications, data and Internet services to businesses and consumers in
Latin America. The Company has over 10,000 kilometers of fiber optic cable and
provides first-mile broadband connections through a variety of delivery
technologies including fiber optic cable, hybrid fiber coaxial cable and
broadband fixed wireless connections. The Company serves over 30,000 customers
and currently has operations in six Countries - Mexico, Guatemala, El Salvador,
Costa Rica, Panama and Venezuela.
About ING Barings:
ING Barings is the organization and trade name used by ING Bank N.V. and certain
of its subsidiaries for the conduct of its activities in the field of
international corporate and investment banking, including treasury services,
M&A, corporate and sovereign lending, fixed income and equity origination,
trading, sales and research. ING Bank N.V. is part of ING Group, one of the
largest integrated financial services organizations in the world.
# # #
The statements contained in this release that are not purely historical are
forward-looking statements, as defined in section 21E of the Securities Exchange
Act of 1934, and include the Company's beliefs, expectations or intentions
regarding its future operations, acquisitions and financial condition. All
forward-looking statements included in this release are made as of the date
hereof and are based upon information available to the Company as of such date.
The Company assumes no obligation to update any forward-looking statements. It
is important to note that actual outcomes could differ materially from such
forward-looking statements.