NEW YORK -- Metromedia Fiber Network, Inc. (MFN) (Nasdaq: MFNX), the leader in deployment of optical IP Internet infrastructure within key metropolitan areas domestically and internationally, announced today that it has signed a secured note purchase agreement for a $150 million note facility led by Citicorp USA. Pursuant to the agreement, which will terminate on September 17, 2001 if the closing does not occur on or prior to such date, Citicorp agreed to purchase $62.5 million of notes with other lenders (including an affiliate of the Company) agreeing to purchase the remaining $87.5 million. The closing of the $150 million note facility is subject to conditions including: - The closing of $230 million of convertible debt financing, $180 million of which has been committed to by affiliates of the Company, and $50 million of which has been committed to by an investor.
- The closing of $235 million of vendor financing, for which the Company has received a commitment.
- Agreements from other Company vendors to defer payment of the Company's obligations to such vendors.
- The note purchasers being satisfied with their due diligence investigation of the Company. The Company also announced today that it received an extension until September 12, 2001 of the commitment for the $235 million of vendor financing. The Company cannot provide any assurances that it will be able to consummate any of the financings it is pursuing. Each of the financings is contingent upon the consummation of the other financings. In the event that the Company does not consummate the financings, it will need to seek protection under the bankruptcy laws. In the event that the Company does consummate the financings, the Company's stockholders will be significantly diluted as a result of the issuance of equity to the parties providing financing.Metromedia Fiber Network Inc. (MFN)