Worldwide Fiber completed equity private placements totaling $345 million in Convertible Preferred Stock with Tyco and three independent investors, which combined represent a minority interest in Worldwide Fiber. The proceeds of the placements, together with an underwritten project financing commitment will fully fund the $850 million Hibernia fiber optic network. In July,
Worldwide Fiber had selected Tyco Submarine Systems Ltd. (TSSL) as the sole supplier for the 12,200 kilometer transatlantic Hibernia project which will connect Worldwide Fiber's North American network to Europe, as their first step toward international connectivity
"This equity participation with Worldwide Fiber highlights our optimism in the future growth of the undersea fiber optic cable market," said L. Dennis Kozlowski, Chairman and Chief Executive Officer. " We are pleased to be a strategic investor in Worldwide Fiber, which is one of the fastest growing independent fiber optic network owners and provider of carrier services. Our investment in Worldwide Fiber and our previously announced joint development with Telefónica Internacional of SAm-1, a South American undersea fiber optic cable project, furthers our commitment to equity participation in businesses which include undersea cable projects. This provides Tyco an additional attractive opportunity to benefit from growing demand in undersea telecommunications traffic, which will have a positive benefit to our shareholders, and adds to our participation in this industry beyond the construction and installation of undersea systems," he added.
Tyco International Ltd., a diversified manufacturing and service company, is the world's largest manufacturer and servicer of underwater telecommunications systems and electrical and electronic components, the world's largest manufacturer, installer, and provider of fire protection
systems and electronic security services, the largest manufacturer of flow control valves, and has strong leadership positions in disposable medical products, plastics, and adhesives. The Company operates in more than 80 countries around the world and has expected fiscal 1999 revenues in excess of $22 billion.
FORWARD LOOKING INFORMATION
Comments in this earnings release concerning market growth and expected
fiscal 1999 revenues are forward-looking statements, which are based on
management's good faith expectations and belief concerning future
developments. Actual results may materially differ from these expectations
as a result of many factors, relevant examples of which are set forth in the
"Management Discussion and Analysis" section of the Tyco's 1998 Annual
Report to Shareholders, Tyco's 1998 Annual Report on Form 10-K, Tyco's
Tyco International Ltd., a diversified manufacturing and service company, is the world's largest manufacturer, installer, and provider of fire protection systems and electronic security services, the largest manufacturer and
servicer of electrical and electronic components and underwater
telecommunications systems, the largest manufacturer of flow control valves,
and has strong leadership positions in disposable medical products,
plastics, and adhesives. The Company operates in more than 80 countries
around the world and has expected fiscal 1999 revenues in excess of $22
billion.
FORWARD LOOKING INFORMATION
Comments in this earnings release concerning the expected results and future
growth of acquisitions and expected fiscal 1999 revenues are forward-looking
statements, which are based on management's good faith expectations and
belief concerning future developments. Actual results may materially differ
from these expectations as a result of many factors, relevant examples of
which are set forth in the "Management Discussion and Analysis" section of
Tyco's 1998 Annual Report to Shareholders and Tyco's 1998 Annual Report on
Form 10-K, as well as, under the heading "Factors Affecting Future Results"
in General Surgical Innovations' Annual Report on Form 10-K for the year
ended June 30, 1998, Form 10-Q for the quarters ended September 30, 1998,
December 31, 1998, and March 31, 1999 and other company filings with the
Securities and Exchange Commission.