Flag Telecom Commences Initial Public Offerings
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London -- FLAG Telecom Holdings Limited announced that the company yesterday filed a Registration Statement with the US Securities and Exchange Commission in connection with its proposed initial public offering.
The global offering will consist of 21.1 million primary shares and 5.3 million secondary shares. The offering price is estimated to be between $20-22 per share.
The global offering will be led by Salomon Smith Barney. Deutsche Banc Alex. Brown, Goldman Sachs & Co., Morgan Stanley Dean Witter and Warburg Dillon Read will act as co-managers.
Application has been made to have the common shares approved for listing on Nasdaq under the symbol "FTHL" and on the London Stock Exchange under the symbol "FTL". Trading is expected to commence on or about 11 February 2000.
FLAG Telecom intends to use the proceeds of the offering to fund its equity in FLAG Atlantic Limited (its 50% owned subsidiary), to repay some of the existing debt of FLAG Limited (its wholly owned subsidiary), to fund additional expansions of its network and the development of additional wholesale and bundled product and services offerings, and for working capital and general corporate purposes.
FLAG Telecom is a global carriers' carrier that develops and offers a broad range of innovative telecommunications products and services to licensed international carriers, Internet Service Providers and other telecommunications companies. The company has an established customer base of approximately 90 customers, including 17 of the top 20 international carriers based on traffic volume.
The FLAG Europe-Asia cable is the longest private cable system in operation today, stretching 28,000 km from Europe to Japan. FLAG Atlantic-1, a multi-terabit dual cable system, is now under construction, through a 50:50 joint venture with GTS.
A registration statement relating to these securities has been filed with the Securities and Exchange Commission but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This communication shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
Bell Atlantic is an investor in FLAG, the world's longest undersea cable system.