LONDON, Sept. 16, 2004 (PRIMEZONE) -- COLT Telecom Group plc (Nasdaq:COLT), a leading pan-European provider of business communications solutions and services, announced today that it has given notice of the redemption of all of the outstanding DM600 million 2% Senior Convertible Notes due 2005 and the EUR368 million 2% Senior Convertible Notes due December 2006. Including accretion the effective interest rates on the Notes are 4.25% and 5.25% respectively. The redemptions will be at the accreted principal amount of the Notes plus accrued interest and will be funded out of COLT's cash and liquid resources. The aggregate amount payable will be approximately GBP317 million. The redemptions will take place on 19 October 2004.
COLT's Chief Financial Officer, Marina Wyatt said:
"Our decision to redeem these Notes reflects the Board's confidence in the future financial success of COLT. COLT is financially strong with GBP794 million of cash and liquid resources as at 30 June 2004. We have been free cash flow positive on a cumulative basis for the 12 months ended 30 June 2004 and we expect to be free cash flow positive on a sustainable basis during 2005. By redeeming the Notes early we will save approximately GBP18 million of net interest over the next two years."
About COLT
COLT Telecom Group plc is a leading pan-European provider of business communications services. COLT has over 19,000 network services and data centre solutions customers. The company owns an integrated 20,000 kilometre network that directly connects 32 major cities in 13 countries augmented with a further 42 points of presence across Europe and 11 Data Solution Centres. COLT supplies customers across the full spectrum of industry, service and government sectors with unrivalled end-to-end network security, reliability and service.
COLT Telecom Group plc is listed on the London Stock Exchange (CTM.L) and Nasdaq (COLT). Information about COLT and its products and services can be found on the web at www.colt.net
This information is provided by RNS The company news service from the London Stock Exchange