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PEER 1 secures enhanced credit facilities

^{Published on 2009-06-25 13:48:48, Last Modified on 2009-06-25 13:49:47 - Market Wire}
 

 New US $40 million credit facilities at superior terms VANCOUVER, June 25 /CNW/ - PEER 1 Network Enterprises, Inc. (TSX:PIX), a global online IT hosting provider, today announced that it has entered into a credit agreement with National Bank Financial Group for a term and a revolving credit facility of US $40 million in aggregate. The new facilities replace the credit facilities that were provided by Fortress Credit Corp., but on terms that are less costly and more flexible. "We are thrilled to enter into this credit agreement with National Bank Financial," said Fabio Banducci, President and CEO of PEER 1. "Securing these credit facilities at such favorable rates provides PEER 1 with access to the capital we require to execute on our growth strategy. While we plan to fund our current expansions in Toronto and Europe with cash on hand and operational cash flow, the additional capital available through these facilities provides PEER 1 with enhanced flexibility to capitalize on opportunities as they emerge." The 3 year US $15 million term facility was fully drawn at closing earlier today. US $13 million of the facility has been used to repay all of PEER 1's remaining debt with Fortress Credit Corp. with the balance, less transaction costs, added to PEER 1's cash position. The term loan will accrue interest at a fixed rate of 5.36% per annum. The 3 year US $25 million revolving facility will be available to PEER 1 to finance operations, capital expenditures, and/or acquisitions that meet the criteria specified in the credit agreement. The facility was not drawn upon at closing. Interest will accrue on balances outstanding at an annual rate of either Canadian prime plus a margin of between 1.75% and 2.50% for funds drawn in Canadian dollars, or LIBOR plus a margin of between 2.75% and 3.50% for funds drawn in US dollars. The applicable margin will be dependent upon the Company's debt to EBITDA ratio at the time funds are drawn. About PEER 1: PEER 1 believes in the limitless opportunity of the Internet, and the business growth potential it provides for its more than 10,000 customers. As a global online IT hosting provider, PEER 1 offers a reliable high performance Internet network supporting scalable managed hosting, dedicated hosting through the ServerBeach brand, and co-location solutions. Backed by its 100 percent uptime guarantee and 24x7x365 FirstCall Support(TM), PEER 1 ensures customers' online presence is always fast, always available. Since 1999, PEER 1 has grown to include 16 state-of-the-art data centers and points-of-presence throughout North America and Europe. The company's headquarters are in Vancouver, Canada, with European operations headquartered in Southampton, UK. PEER 1 shares are traded on the TSX under the symbol PIX. For more information visit: [ www.peer1.com ] or peer1hosting.co.uk. About National Bank Financial Group: National Bank Financial Group, which is celebrating its 150th anniversary in 2009, is an integrated group which provides comprehensive financial services to consumers, small and medium-sized enterprises and large corporations in its core market, while offering specialized services to its clients elsewhere in the world. National Bank Financial Group offers a full array of banking services, including retail, corporate and investment banking. It is an active player on international capital markets and, through its subsidiaries, is involved in securities brokerage, insurance and wealth management as well as mutual fund and retirement plan management. National Bank has close to $138 billion in assets and, together with its subsidiaries, employs 17,343 people. The Bank's securities are listed on the Toronto Stock Exchange (TSX:NA - News). For more information, visit the Bank's website at [ www.nbc.ca ].

For further information: For investor inquiries please contact Thomas McMillan, Equicom Group, (403) 536-5903, [ tmcmillan@equicomgroup.com ]; For North American media inquiries please contact Abigail Faylor, Weber Shandwick, (425) 452-5497, [ afaylor@webershandwick.com ]; For European media inquiries please contact Champion Communications, +44 (0) 20 7665 4060, [ peer1@championcomms.com ]