WorldPort Communications Completes $40 Million Equity Financing / New Capital to Accelerate Global Network Expansion and Market Penetration

ATLANTA (ots-PRNewswire) - WorldPort Communications, Inc. (Nasdaq:
WRDP) announced today that on January 25, 1999, The Heico Companies, LLC completed its $40 million equity investment in WorldPort. The Heico Companies, LLC owns and operates a diversified portfolio of companies. In the transaction, Heico acquired 1,132,824 shares of WorldPort's Series C Convertible Preferred Stock for an aggregate purchase price of $40 million and received an option to acquire up to 283,206 additional shares of Series C Convertible Preferred Stock for $10 million.

In connection with the transaction, WorldPort increased the size of its Board of Directors to eight members and appointed four individuals designated by Heico to serve as directors. WorldPort also amended its bylaws to provide that at least one of Heico's designees and (except in the limited situation regarding certain proposed refinancing of WorldPort's outstanding credit facility) one of the directors who was not designated by Heico, must approve any action put before the Board of Directors.

Holders of Series C Stock are entitled to vote with the holders of common stock as one class. As a result of its equity investment, Heico holds directly approximately 25.0% of the outstanding votes. Further, by virtue of a Shareholder Agreement among Heico, WorldPort and certain stockholders of WorldPort, together with its stock purchase, Heico currently controls, with respect to certain matters, including acquisitions, incurrence of debt and the issuance or sale of equity securities, approximately 50.1% of WorldPort's outstanding votes.

Heico may, at its option and without any payment of consideration, convert its shares of Series C Convertible Preferred Stock into shares of WorldPort's Common Stock at a conversion price of $3.25 per share of Common Stock, receiving 10.865 shares of Common Stock for each share of Series C Stock.

Proceeds from the equity investment are expected to be utilized to further the deployment of WorldPort's global digital network of terrestrial fiber optic cables, advanced switching facilities and rights of use on undersea cables. WorldPort intends to use a portion of the proceeds to commence the deployment of its Pan European network that will connect major U.S. cities to key European cities via WorldPort's regional gateway in the Netherlands and WorldPort's transatlantic fiber optic capacity.

WorldPort Communications, Inc., headquartered in Atlanta, Georgia (USA) is a provider of international long distance and Internet services primarily to the Americas and Europe. The Company is deploying a seamless global network to provide least-cost interconnectivity and high capacity bandwidth products for voice, data, video and Internet traffic to long distance carriers, multi-national corporate customers, distributors and Internet service providers. WorldPort is focused on providing customers a true end-to-end solution by routing traffic through a seamless system of undersea fiber-optic network cables, advanced circuit and packet switches and high efficiency gateways in strategic markets worldwide. WorldPort is expanding its global network through internal business development, acquisitions and international strategic alliances. For more information, please visit the WorldPort web site at

This press release includes statements that may constitute forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. These statements are subject to risks and uncertainties that could cause actual results to differ materially from the forward looking statements. Factors which would cause or contribute to such differences include, but are not limited to factors detailed in the Company's Securities and Exchange Commission filings.

ots Original Text Service: WorldPort Communications, Inc.


Phillip Magiera, Chief Financial Officer of WorldPort Communications, Inc., 770-792-8735; or Retail: Jim Estrada, Joe Dorame, Brett Maas; Analysts/Institutional: Joe Diaz; Media: Jeffrey Stanlis, of RCG Capital Markets Group, Inc., 602-675-0400, for WorldPort Communications, Inc.

Company News On-Call: or fax, 800-758-5804, ext. 128371

Web site:

Web site: