ATN Aterian Plc

RNS Number:5622E
Atlantic Telecom Group PLC
27 January 2000


Not for release, publication or distribution in whole or
  in part in or into the United States, Canada, Japan,
          Australia or the Republic of Ireland
                            
ATLANTIC TELECOM GROUP PLC ("ATLANTIC" OR THE "COMPANY")
   RAISING OF EUR323 MILLION (#197 MILLION) THROUGH AN
 OFFERING OF SENIOR NOTES AND WARRANTS TO FUND EXTENSION
                    OF BUSINESS PLAN
                            
Atlantic,  the fast growing telecommunications  provider,
today   priced  a  high  yield  bond  offering  to  raise
approximately  EUR323  million  (#197  million)   (before
expenses).   Atlantic will use a portion of the  proceeds
together  with #93.8 million (net of expenses)  from  its
recent  equity  fundraising and  #58.5  million  (net  of
expenses) from the issue of shares to Marconi plc, to:
*  fully  fund the construction of a network in the North
   West  of  England covering the City of Manchester  and
   selected areas of Greater Manchester;
*  fully  fund the construction of a network in the North
   East  of England, covering the key areas of Newcastle,
   Sunderland and Middlesborough;
*  introduce  high speed point-to-multipoint services  on
   the  Company's Scottish networks and incorporate  them
   in network builds going forward;
*  complete  the  Company's Scottish networks,  including
   city-centre and other selected fibre builds;
*  launch  an  ISP service offering access and e-commerce
   solutions to business and residential customers  under
   the atlantic-e.com brand; and
*  upgrade  the  Company's  cable television  network  in
   Aberdeen for digital transmission.
In addition, a portion of the net proceeds from the issue
will  be  held in escrow and used to pay the  first  four
interest payments on the senior notes.  Completion of the
issue is expected to occur on 3 February 2000.
The  senior notes have been rated B3 by Moodys and B-  by
Standard & Poors. The offering was lead managed by  Chase
Securities Inc. and co-managed by Warburg Dillon Read and
ABN Amro Incorporated.
The offering comprised:
*  200,000 Euro Units, consisting of EUR200 million (#122
   million) principal amount 13.0 per cent. Senior  Notes
   due 2010 and 200,000 Euro Warrants.  Each Euro Warrant
   entitles  the holder to subscribe for 19.174  Atlantic
   ordinary shares ("Ordinary Shares") at 980p per share;
   and
*  75,000  Sterling  Units,  consisting  of  #75  million
   principal amount 13.25 per cent. Senior Notes due 2010
   and  75,000 Sterling Warrants.  Each Sterling  Warrant
   entitles  the holder to subscribe for 31.375  Ordinary
   Shares at 980p per share.
In aggregate, the Euro Warrants and the Sterling Warrants
(the  "Warrants") will entitle the holders to acquire  an
aggregate  of  6,187,858  Ordinary  Shares,  representing
approximately  3.87  per cent. of the Company's  enlarged
issued  share capital following exercise of the Warrants.
The  Warrants are exercisable at any time after the first
anniversary of their issue and, unless exercised earlier,
will expire on 3 February 2010.
Commenting  on  the  funding,  Graham  Duncan,  Executive
Chairman of Atlantic, said:
"We  are  delighted  by  the  investor  response  to  our
offering.  This has enabled us to significantly  increase
the  issue  beyond  the level initially contemplated  and
obtain pricing at the bottom end of the range.  This  new
funding  will  allow Atlantic to roll out its  successful
business model into new areas of its UK target market, as
well  as funding the completion of the Greater Manchester
buildout  and  the further development  of  its  existing
networks.
We  look  forward  to  the next  exciting  phase  in  the
development of the group"

Enquiries:

Graham Duncan         Atlantic Telecom    01224 454 000
Executive Chairman                        
Patrick Toyne         Citigate Dewe       0171 282 2889
Sewell, Sara Thomas   Rogerson

This announcement does not constitute or form any part of
any offer to the public or invitation to sell or issue or
any  solicitation of any offer to the public to  purchase
or  subscribe  for  any  securities  of  Atlantic.   This
announcement is not an offer of securities  for  sale  in
the  United States.  Moreover, the securities the subject
of  the offering may not be offered or sold in the United
States   absent   registration  or  an   exemption   from
registration.   Any public offering of securities  to  be
made  in  the United States will be made by  means  of  a
prospectus  that may be obtained from the issuer  or  the
selling   security  holder  and  will  contain   detailed
information about the Company and management, as well  as
financial statements.


END
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