Global Crossing expects that proceeds from these equity offerings -- combined with proceeds from equity and debt financings to be completed this year by its Asian joint ventures and other subsidiaries and affiliates -- will fully fund all of Global Crossing's anticipated business expansion activities for the year.
The common stock offering is expected to include 58 million shares, one half to be sold by the company and one half by certain current shareholders. The total value of the common stock offered will be approximately $2.5 billion based on the March 30, 2000, closing price of $43.313. The common stock sold by the company, combined with the three million shares of cumulative convertible preferred stock,each share with a $250 liquidation preference, are expected to provide approximately $2 billion of gross proceeds for the company. The final common stock offering price and the terms of the cumulative
convertible preferred stock are expected to be determined in April.
All selling shareholders who are part of the company's management as well as all other executive officers of the company have agreed not
to sell additional shares during the 90-day period following the offering. Selling shareholders who are not part of management have
agreed not to sell any additional shares before May 25, 2000.
The three million shares of cumulative convertible preferred stock are convertible into common stock at a price to be determined and will
be subject to mandatory redemption in 2012. Dividends on the convertible preferred stock will be paid quarterly at a percentage rate to be determined.
The joint book-running managers for the offerings of Global Crossing common stock and convertible preferred stock are Salomon Smith Barney and Goldman, Sachs & Co. Merrill Lynch & Co. will act as joint lead manager for the offerings.
Also disclosed in today's filing is the intention of Global Crossing and its partners to make an initial public offering of shares
of Asia Global Crossing common stock. The Asia Global Crossing offering is expected to be completed this summer, subject to market
conditions.
This announcement is not an offer to buy nor a solicitation of an offer to sell any securities. The offering will be made only by means of a prospectus contained in such registration statement as filed with the U.S. Securities and Exchange Commission.