Additionally, Verizon has agreed to extend from May 31, 2001 to December 31, 2001 the final maturity date of all borrowings under the credit agreement.
Verizon has also agreed to provide Genuity with credit enhancements to readily access long-term sources of capital with maturities up to five years.
The aggregate amount of interim funding and credit enhancements provided by Verizon will be $2.0 billion. All transactions between Genuity and Verizon will be consistent with the Federal Communications Commission final order approving the merger of Bell Atlantic Corp. and GTE Corp. in June 2000.
Verizon Chairman and co-CEO Charles R. Lee and co-CEO and President Ivan G. Seidenberg said, "Now that we have FCC permission to sell long distance in Massachusetts, we are one step closer to clearing the necessary regulatory hurdles that will allow us to bring Genuity back into the Verizon family. This agreement to amend our credit agreement with Genuity underscores the long-term importance of the company to Verizon's strategy of meeting the communications needs of large businesses, and to our continued roll-out and expansion of broadband services. Genuity is facing the same challenges that many other companies are experiencing due to the economic slowdown and this support gives it additional financial stability to strengthen its ability to grow and compete."
Verizon Communications (NYSE:VZ) is one of the world's leading providers of communications services. Verizon companies are the largest providers of wireline and wireless communications in the United States, with 112 million access line equivalents and 27 million wireless customers. Verizon is also the largest directory publisher in the world. A Fortune 10 company with approximately 260,000 employees and more than $65 billion in annual revenues, Verizon's global presence extends to 40 countries in the Americas, Europe, Asia and the Pacific. For more information on Verizon, visit www.verizon.com.