EarthLink Sells Convertible Notes
Atlanta, Georgia – (The Hosting News) – November 20, 2006 – EarthLink, Inc. has underwritten a public offering of $258,750,000, aggregate principal amount of 3.25% of convertible senior notes due 2026, with an option to purchase an additional $33,750,000 to cover over-allotments, by the underwriters.
EarthLink estimates that the net proceeds from this offering, including proceeds resulting from the exercise of the underwriters’ over-allotment option, will be approximately $251.2 million after deducting the underwriters’ discounts and commissions and estimated offering expenses. EarthLink used a portion of the proceeds from the offering to fund convertible note hedge transactions that EarthLink has entered into with affiliates of each of the underwriters. In connection with the exercise of the underwriters’ over-allotment option noted above, EarthLink also will use a portion of the proceeds from the sale of the additional notes to enter into additional convertible note hedges.
Remaining proceeds will be used for general corporate purposes. Although no commitments or agreements have currently been made for any such purposes, they could include future investments in EarthLink’s various strategic growth initiatives. They could also include future share repurchases. UBS Securities LLC and Banc of America Securities LLC acted as joint book- running managers of the offering.
A registration statement (including a prospectus) and prospectus supplement related to the offering have been filed with the Securities and Exchange Commission and will be available on the SEC’s website. Printed copies of the prospectus and prospectus supplement relating to the offering may also be obtained from UBS Securities LLC, Attention: Prospectus Department, 299 Park Avenue, New York, New York, 10171 or Banc of America Securities LLC, Attention: Capital Markets Operations, 100 West 33rd Street, 3rd Floor, New York, NY 10001.
As an Internet service provider, Atlanta-based EarthLink has earned an award-winning reputation for outstanding customer service and its suite of online products and services. Serving over five million subscribers, EarthLink offers what every user should expect from their Internet experience: high-quality connectivity, minimal online intrusions and customizable features, including dial-up, high-speed, voice, web hosting, wireless, home networking and security.
To learn more, please visit: www.earthlink.net.