Williams Increases Credit Facility

TULSA, Okla. -- Williams Communications (NYSE:WCG), a leading provider of broadband services for bandwidth-centric customers, today announced that Citicorp USA, Inc. and Lehman Commercial Paper Inc. have committed to fully underwrite a $950 million add-on to the company's existing senior credit facilities, bringing the total size of the company's senior credit facilities to $2 billion. Williams Communications expects to complete the transaction this month, subject to the approval of its current lenders and completion of certain other transactions. Salomon Smith Barney Inc. and Lehman Brothers Inc. are acting as joint lead arrangers and joint book managers for the add-on facility.

"Upsizing our bank credit facility is one more important step in positioning Williams Communications to fully fund our business plan," said Williams Communications President and CEO Howard E. Janzen. "This financing plan, including the capital restructuring agreement announced last week, is key to our preparation for a possible tax-free spin-off of Williams Communications shares to Williams' (NYSE:WMB) shareholders by mid-year."

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