ST. LOUIS – May 3, 2007 – SAVVIS, Inc. (NASDAQ:SVVS), a global leader in IT infrastructure services for business applications, today announced the pricing of $300 million aggregate principal amount of unsecured 3.0% Convertible Senior Notes due May 15, 2012. SAVVIS also has granted the underwriters an over-allotment option to purchase up to $45 million aggregate principal amount of additional notes on the same terms and conditions. SAVVIS expects to use proceeds from the offering for general corporate purposes, which may include refinancing of existing debt, capital expenditures, and acquisitions.
Under certain circumstances, the notes will be convertible at an initial conversion rate of 14.2086 shares of SAVVIS common stock per $1,000 principal amount of notes, subject to adjustment. This conversion rate is equivalent to an initial conversion price of approximately $70.38 per share. This represents an approximately 42.5% premium to the last reported sale price of SAVVIS’ common stock on the NASDAQ Global Market on May 3, 2007. Upon conversion, holders will receive, at SAVVIS’ election, cash, shares of common stock or a combination of cash and shares of common stock.
The notes will be issued pursuant to an effective registration statement filed with the Securities and Exchange Commission. Morgan Stanley & Co. Incorporated and Goldman, Sachs & Co. will act as joint book-running lead managers for the offering. A prospectus relating to the offering may be obtained by contacting Morgan Stanley & Co. Incorporated, Attn: Prospectus Dep’t, 180 Varick Street, New York, NY 10004, 212-761-4000; or Goldman, Sachs & Co., 85 Broad Street, New York, NY 10004, fax: 212-902-9316, or e-mail email@example.com.
This announcement shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any offer of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.
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 subsequent filings. Those risk factors include, but are not limited to, variability in pricing for SAVVIS’ products, highly competitive markets, rapid evolution of technology, variability in the availability and terms of financing, and uncertainties related to merger and acquisition activity. The forward-looking statements contained in this document speak only as of the date of publication, May 3, 2007. Subsequent events 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 date.
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 24 data centers, and automated management and provisioning systems.