ST. LOUIS, MO. – December 10, 2004 – SAVVIS Communications Corporation (NASDAQ: SVVS), a leading global IT utility, announced today that the conversion of its Series B preferred stock into common shares, described in its Information Statement on Schedule 14C dated November 12, 2004, became effective December 9, 2004.
SAVVIS’ Series B Convertible Preferred Stock was issued in conjunction with its $200 million Series A Subordinated Notes, which were used to finance SAVVIS’ acquisition of the assets of Cable & Wireless USA, Inc., and Cable & Wireless Internet Services, Inc. (collectively, “CWA”) in March 2004. Under its terms, the Series B preferred stock automatically converted into 65,528,860 shares of common stock effective December 9, 2004. Holders of the converted common shares include funds and individuals affiliated with SAVVIS’ long-time financing partners, Welsh, Carson, Anderson & Stowe, with approximately 39.3 million converted common shares, and Constellation Ventures, with approximately 3.3 million converted common shares. In addition, funds affiliated with Oak Hill Capital own approximately 20.5 million converted common shares and GI Partners owns approximately 2.5 million of the converted common shares.
The converted common shares have not been registered under the Securities Act of 1933, and therefore may not be sold unless registered or pursuant to an exemption from registration. The converted common shares are entitled to certain demand and piggy-back registration rights, and become eligible for sale, subject to restrictions under Rule 144 of the Securities Act, in February 2005. Following the conversion, SAVVIS has approximately 180.0 million common shares outstanding, with a public float of approximately 87.0 million shares. In addition, SAVVIS’ Series A Convertible Preferred Stock is currently convertible into approximately 356.6 million shares of common stock and is entitled to vote on an as-converted basis.
For More Information
For more detailed information on the issuance and conversion of the Series B Convertible Preferred Stock, please see SAVVIS’ Schedule 14C, filed with the Securities and Exchange Commission on November 16, 2004, and available through the investor relations section of the company website at www.savvis.net.
SAVVIS Communications (NASDAQ: SVVS) is a leading global IT utility services provider that delivers secure, reliable, and scalable hosting, network, and application services. SAVVIS’ strategic approach combines the use of virtualization technology, a utility services model, and automated software management and provisioning systems. SAVVIS solutions enable customers to focus on their core business while SAVVIS ensures the quality of their IT infrastructure. With an IT services platform that extends to 47 countries, SAVVIS is one of the world’s largest providers of IP computing services. For more information about SAVVIS, visit www.savvis.net.