PEER 1 secures enhanced credit facilities

    New US $40 million credit facilities at superior terms

    VANCOUVER, June 25 /CNW/ - PEER 1 Network Enterprises, Inc. (TSX:PIX), a
global online IT hosting provider, today announced that it has entered into a
credit agreement with National Bank Financial Group for a term and a revolving
credit facility of US $40 million in aggregate. The new facilities replace the
credit facilities that were provided by Fortress Credit Corp., but on terms
that are less costly and more flexible.
    "We are thrilled to enter into this credit agreement with National Bank
Financial," said Fabio Banducci, President and CEO of PEER 1. "Securing these
credit facilities at such favorable rates provides PEER 1 with access to the
capital we require to execute on our growth strategy. While we plan to fund
our current expansions in Toronto and Europe with cash on hand and operational
cash flow, the additional capital available through these facilities provides
PEER 1 with enhanced flexibility to capitalize on opportunities as they
    The 3 year US $15 million term facility was fully drawn at closing
earlier today. US $13 million of the facility has been used to repay all of
PEER 1's remaining debt with Fortress Credit Corp. with the balance, less
transaction costs, added to PEER 1's cash position. The term loan will accrue
interest at a fixed rate of 5.36% per annum.
    The 3 year US $25 million revolving facility will be available to PEER 1
to finance operations, capital expenditures, and/or acquisitions that meet the
criteria specified in the credit agreement. The facility was not drawn upon at
closing. Interest will accrue on balances outstanding at an annual rate of
either Canadian prime plus a margin of between 1.75% and 2.50% for funds drawn
in Canadian dollars, or LIBOR plus a margin of between 2.75% and 3.50% for
funds drawn in US dollars. The applicable margin will be dependent upon the
Company's debt to EBITDA ratio at the time funds are drawn.

    About PEER 1:

    PEER 1 believes in the limitless opportunity of the Internet, and the
business growth potential it provides for its more than 10,000 customers. As a
global online IT hosting provider, PEER 1 offers a reliable high performance
Internet network supporting scalable managed hosting, dedicated hosting
through the ServerBeach brand, and co-location solutions. Backed by its 100
percent uptime guarantee and 24x7x365 FirstCall Support(TM), PEER 1 ensures
customers' online presence is always fast, always available. Since 1999, PEER
1 has grown to include 16 state-of-the-art data centers and points-of-presence
throughout North America and Europe. The company's headquarters are in
Vancouver, Canada, with European operations headquartered in Southampton, UK.
PEER 1 shares are traded on the TSX under the symbol PIX. For more information
visit: or

    About National Bank Financial Group:

    National Bank Financial Group, which is celebrating its 150th anniversary
in 2009, is an integrated group which provides comprehensive financial
services to consumers, small and medium-sized enterprises and large
corporations in its core market, while offering specialized services to its
clients elsewhere in the world. National Bank Financial Group offers a full
array of banking services, including retail, corporate and investment banking.
It is an active player on international capital markets and, through its
subsidiaries, is involved in securities brokerage, insurance and wealth
management as well as mutual fund and retirement plan management. National
Bank has close to $138 billion in assets and, together with its subsidiaries,
employs 17,343 people. The Bank's securities are listed on the Toronto Stock
Exchange (TSX:NA - News). For more information, visit the Bank's website at

For further information:

For further information: For investor inquiries please contact Thomas
McMillan, Equicom Group, (403) 536-5903,; For North
American media inquiries please contact Abigail Faylor, Weber Shandwick, (425)
452-5497,; For European media inquiries please
contact Champion Communications, +44 (0) 20 7665 4060,

Organization Profile

PEER 1 Network Enterprises, Inc.

More on this organization

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890