PRIMUS Telecommunications Reduces Long-Term Obligations by $33 Million

HostReview.com
Monday, March 15, 2004; 12:00 AM

MCLEAN, Va., Mar 15, 2004 (BUSINESS WIRE) -- PRIMUS Telecommunications Group, Incorporated (Nasdaq:PRTL), a global telecommunications services provider offering bundled voice, data, Internet, digital subscriber line (DSL), voice-over-Internet protocol (VOIP), Web hosting, enhanced virtual private network (VPN) applications and other value added services, today announced that it has repurchased and retired approximately $23 million principal amount of its 12.75% senior notes due 2009 and has repaid the entire outstanding balance of approximately $10 million principal amount on its Canadian financing facility which carried a 15% per annum interest rate.

These actions are in addition to the previously announced transactions in February 2004 involving the satisfaction, discharge and redemption of approximately $47 million principal amount of the Company's 9.875% senior notes due 2008 and approximately $110 million principal amount of its 11.25% senior notes due 2009.

As a result of these debt retirement actions implement during 2004, in the first quarter of 2004 the Company expects to report an approximately $14 million loss from early extinguishment of debt from the payment of call and purchase premiums plus approximately $4 million of related interest expense as a result of deferred financing cost write-offs, early termination fees and normal interest expense. As a consequence of these actions the Company's annual interest expense on its existing balance of long-term obligations will be approximately $46 million.

"These transactions are consistent with our previously stated goals, and they continue to demonstrate PRIMUS's ability to implement its plan of reducing long-term obligations, extending debt maturities, increasing liquidity and reducing interest expenses," stated Neil L. Hazard, Chief Operating Officer.

PRIMUS Telecommunications Group, Incorporated (NASDAQ:PRTL) is a global telecommunications services provider offering bundled voice, data, Internet, DSL, VOIP, Web hosting, enhanced VPN applications and other value added services. PRIMUS owns and operates an extensive global backbone network of owned and leased transmission facilities, including VOIP connections to over 150 countries and over 550 points-of-presence (POPs) throughout the world, ownership interests in over 23 undersea fiber optic cable systems, 18 international gateway and domestic switches, and a variety of operating relationships that allow it to deliver traffic worldwide. PRIMUS also has deployed a global state-of-the-art broadband fiber optic ATM+IP network and data centers to offer customers Internet, data, hosting and e-commerce services. Founded in 1994 and based in McLean, Virginia, PRIMUS serves corporate, small and medium-sized businesses, residential and data, ISP and telecommunication carrier customers primarily located in the North America, Europe and Asia-Pacific regions of the world. News and information are available at PRIMUS's Web site at www.primustel.com.

SOURCE: PRIMUS Telecommunications Group, Incorporated

PRIMUS Telecommunications Group, Incorporated
John DePodesta, 703-902-2800
jdepodesta@primustel.com