ATLANTA, Feb. 22, 2017 /PRNewswire/ -- Internap
Corporation (NASDAQ: INAP) ("INAP" or the "Company"), a leading
technology provider of high-performance Internet infrastructure
services, today announced a private placement of approximately 23.8
million shares of its common stock at a price of $1.81 per share, for aggregate gross proceeds of
approximately $43 million. The
funding in the private placement is provided by a group of
investors that include affiliates of or funds managed by GAMCO
Investors, Inc. and accounts advised by Avenir Corporation. The
settlement date for the transaction is February 27, 2017.
The Company will use the net proceeds of the offering to repay a
portion of its term loan indebtedness. The equity offering
and debt repayment will enable the Company to meet conditions under
the Third Amendment and Waiver to Credit Agreement dated as of
January 26, 2017 that among other
things eases restrictions on the interest coverage ratio and
leverage coverage ratio covenants. The Company expects this
to provide it with additional operating flexibility as it continues
to implement its business plan.
"The confidence demonstrated by our investors in the future
of INAP is extremely motivating to the entire management team as we
continue our comprehensive operations improvement initiative," said
Peter D. Aquino, President and Chief
Executive Officer. "The speed with which our new team is moving to
right-size our business and invest in sales and marketing to
capture strong market demand for Colocation and Cloud services is
impressive. The next steps in the 2017 transformation of the
new INAP is to approach the market as two pure plays, complete our
debt refinancing, and begin to consider strategic opportunities to
bolster our organic growth."
INAP reaffirms guidance for 2016, consisting of revenue of
$297 million to $300 million,
adjusted EBITDA of $81 million to $83
million, and capital expenditures of $47 million to $50 million, and its guidance for
2017, consisting of revenue of $275 million
to $285 million, adjusted EBITDA of $84 million to $87 million and capital
expenditures of approximately $42
million.
Jefferies LLC served as the placement agent for the
offering. Jenner & Block LLP acted as legal counsel to
the Company, and White & Case LLP acted as legal counsel to
Jefferies LLC.
Fourth Quarter 2016 Conference Call Information:
Internap Corporation will release fourth quarter 2016 financial
results before market open on Thursday,
March 9, 2017. At 8:30 a.m. ET
the same day, senior management will host a conference call
presentation to discuss the results.
The call can be accessed by dialing 877-334-0775. International
callers should dial 631-291-4567. Listeners may connect to the
simultaneous webcast, which will include accompanying presentation
slides, on the Investor Relations section of the INAP website. An
online archive of the webcast presentation will be available for
one month following the call. An audio-only replay will be
accessible from Thursday, March 9,
2017 at 11:30 a.m. ET through
Thursday, March 16, 2017 at
855-859-2056 using replay code 62423127. International callers can
listen to the archived event at 404-537-3406 with the same
code.
About INAP
Internap Corporation (NASDAQ: INAP) is a leading technology
provider of internet infrastructure through both Colocation
Business and Enterprise Services (including network connectivity,
IP, bandwidth, and Managed Hosting), and Cloud Services (including
enterprise-grade AgileCLOUD 2.0, Bare-Metal Servers, and SMB iWeb
platforms). INAP's global high-capacity network connects 15
company-controlled Tier 3-type data centers in major markets in
North America, 34 wholesale
partnered facilities, and points of presence in 26 central business
districts around the world. INAP continues to transform since its
inception in 1996, meeting customer demand for custom solutions and
high-touch state-of-the-art colocation and cloud products and
services. INAP now operates a premium business model that
also provides high-power density colocation, low-latency bandwidth,
and public and private cloud platforms in an expanding internet
infrastructure industry. For more information, visit
www.inap.com.
Forward-Looking Statements
This press release contains forward-looking statements. These
forward-looking statements include statements related to our
initiatives regarding sales and marketing; our strategy to align
into pure-play businesses; initiatives regarding balance sheet
recapitalization and strategic opportunities; and our expectations
for 2016 and 2017 revenues, adjusted EBITDA and capital
expenditures. Our ability to achieve these forward-looking
statements is based on certain assumptions, including our ability
to execute on our business strategy, leveraging of multiple routes
to market, expanded brand awareness for high-performance Internet
infrastructure services and customer churn levels. These
assumptions may prove to be inaccurate in the future. Because such
forward-looking statements are not guarantees of future performance
and involve risks and uncertainties, there are important factors
that could cause our actual results to differ materially from those
in the forward-looking statements. These factors include our
ability to execute on our business strategy and drive growth; our
ability to maintain current customers and obtain new ones, whether
in a cost-effective manner or at all; the robustness of the IT
infrastructure services market; our ability to achieve or sustain
profitability; our ability to expand margins and drive higher
returns on investment; our ability to sell into new and existing
data center space; the actual performance of our IT infrastructure
services; our ability to correctly forecast capital needs, demand
planning and space utilization; our ability to respond successfully
to technological change and the resulting competition; the
availability of services from Internet network service providers or
network service providers providing network access loops and local
loops on favorable terms, or at all; failure of third party
suppliers to deliver their products and services on favorable
terms, or at all; failures in our network operations centers, data
centers, network access points or computer systems; our ability to
provide or improve Internet infrastructure services to our
customers; our ability to protect our intellectual property; market
conditions and the terms of any issuance of equity or debt
securities or the refinancing or amendment of our indebtedness;
risks related to our indebtedness, including our substantial amount
of debt, our ability to incur debt and increases in interest rates
or in our borrowing margins; our ability to meet the financial and
other covenants contained in our credit agreement; as well as other
factors discussed in our filings with the Securities and Exchange
Commission. Given these risks and uncertainties, investors should
not place undue reliance on forward-looking statements as a
prediction of actual results. We undertake no obligation to update,
amend or clarify any forward-looking statement for any reason.
Non-GAAP Financial Measures
Because of the forward-looking nature of the Company's forecasts
of adjusted EBITDA, specific quantifications of the amounts that
would be required to reconcile a pre-tax income or loss are not
available. The Company believes that there is a degree of
volatility with respect to certain of the Company's GAAP measures
which preclude the Company from providing accurate forecast of GAAP
to non-GAAP reconciliations. Based on the above, the Company
believes that providing estimates of the amounts that would be
required to reconcile the range of the non-GAAP adjusted EBITDA
would imply a degree of precision that would be confusing or
misleading to investors.
INAP Investor Contacts
Richard Ramlall
404-302-9982
ir@inap.com
Carolyn Capaccio/Jody
Burfening
LHA
212-838-3777
inap@lhai.com
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SOURCE Internap Corporation