ST. LOUIS--(BUSINESS WIRE)--June 29, 2007--SAVVIS, Inc. (Nasdaq:
SVVS), a global leader in IT infrastructure services for business
applications, announced today that it has prepaid $342.5 million of
debt obligation related to its 15% paid-in-kind Series A Subordinated
Notes issued in February 2004 (the Notes). The payment included $200.0
million of principal, $119.3 million of interest costs and $23.2
million of a negotiated make-whole premium related to early repayment
of the notes, which were issued with a maturity date of January 30,
2009. Holders of the Notes agreed to a reduction in the make-whole
premium, resulting in savings of $8.6 million compared to the amount
owed on the first call date, January 30, 2008. The early repayment
eliminates approximately $30.9 million of non-cash interest expense
for SAVVIS in 2007 and approximately $67.6 million in 2008.
SAVVIS CEO Phil Koen said, "Early repayment of these 15% in-kind
notes is an important step in the ongoing process of strengthening
SAVVIS' capital structure. Our continued success in the market with
innovative, industry-leading managed IT infrastructure solutions has
driven SAVVIS' strong growth, making possible the significant
improvements in our financial condition we have achieved over the past
year. We're very grateful for the support and confidence our debt
holders have demonstrated, and for their flexibility in enabling this
The Notes were originally issued in February 2004 to fund a major
acquisition. Terms of the Notes included provision for a make-whole
premium in the event of early repayment, equal to $31.8 million as of
the first call date, January 30, 2008, which was reduced to $23.2
million through negotiation. SAVVIS' net income for the second quarter
of 2007 will include a charge of approximately $44 million related to
the early extinguishment of debt, due to the make-whole associated
with the Notes and the write-off of the original issue discount and
deferred financing costs.
This document may contain forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
Actual results may differ materially from SAVVIS' expectations.
Certain factors that could adversely affect actual results are set
forth as risk factors described in SAVVIS' SEC reports and filings,
including its annual report on Form 10-K for the year ended December
31, 2006, and all subsequent filings. Those risk factors include, but
are not limited to, variability in the availability and terms of
financing. The forward-looking statements contained in this document
speak only as of the date of publication, June 29, 2007. Subsequent
events and developments may cause the company's forward-looking
statements to change, and the company will not undertake efforts to
revise those forward-looking statements to reflect events after this
SAVVIS, Inc. (NASDAQ: SVVS) is a global leader in IT
infrastructure services for business applications. With an IT services
platform spanning North America, Europe, and Asia, SAVVIS is an
industry leader in delivering secure, reliable, and scalable hosting,
network, and application services. These solutions enable customers to
focus on their core business while SAVVIS ensures the quality of their
IT systems and operations. SAVVIS' strategic approach combines
virtualization technology, a global network and 22 data centers, and
automated management and provisioning systems. For more information,
please visit www.savvis.net.
CONTACT: SAVVIS, Inc.
Carter Cromley, 703-667-6110
Elizabeth Corse, 703-667-6984
SOURCE: SAVVIS, Inc.