Main News Desk

Internap and Bank of America Amend Credit Agreement to Support Continued Growth

$35 million credit facility simplifies debt structure, provides greater flexibility and liquidity to invest in the company’s future

Atlanta, GA - October 06, 2008

Internap Network Services Corporation (NASDAQ: INAP), a global provider of end-to-end Internet business solutions, announced today that it has amended its credit agreement with Bank of America in order to simplify its capital structure, add additional flexibility and improve its liquidity position. As financial markets tighten around the globe, this amended credit facility from one of the world’s leading financial institutions demonstrates confidence in Internap’s business plan and management.

The amendment to Internap’s credit agreement with Bank of America simplifies the company’s debt structure by consolidating a two-tiered configuration into a single revolving loan facility. Under the amended credit facility, Internap will convert its existing $20,000,000 term loan balance and outstanding letters of credit with Bank of America into a $35,000,000 revolving loan. The agreement enhances Internap’s repayment flexibility by extending principal settlement terms from quarterly payments, scheduled to begin in the third quarter of 2008, to a single principal repayment due in 2011 and preserves $10,000,000 of borrowing capacity for the company.

The amended facility also allows the company to make capital expenditures of up to $55,000,000 for the fiscal year ending December 31, 2008. The additional borrowing capacity under the amended revolving credit commitment is available to fund capital expenditures, lease financing obligations, letters of credit or can be used for other corporate purposes.

Executive quote

“I am pleased that Bank of America has the confidence in our business plan to provide Internap with this additional financial flexibility and capacity,” said George Kilguss, chief financial officer of Internap. “We continue to be well-positioned in growing markets and are focused on providing network and hosting services to run business critical Web sites with 100% reliability.”

Multimedia

www.internap.com

About the company

About Internap
Internap is a leading Internet solutions company that provides The Ultimate Online Experience™ by managing, delivering and distributing applications and content with unsurpassed performance and reliability. With a global platform of data centers, managed Internet services, a content delivery network (CDN) and content monetization services, Internap frees its customers to innovate their business and create new revenue opportunities. More than 3,700 companies across the globe trust Internap to help them achieve their Internet business goals. For more information, visit www.internap.com.

Contact details

Internap press contacts:

Katie Eakins / Wanda Soler

(619) 677-2700

internap@lewispr.com

 

Internap investor contact:

Andrew McBath

(404) 865-7198

amcbath@internap.com

Related links

www.internap.com


Technorati tags: Internap | content delivery | colocation | call center | VoIP | WAN optimization | acceleration |

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