Global Crossing Ltd.
Dan Cohrs, Chief Financial Officer:
"Goldman Sachs has been supporting us with a broad range of strategic advisory and financing services as we've moved to build a worldwide, state-of-the-art telecommunications network. When we decided to bid for Racal Telecom, the firm instantly pulled together a team and inserted us into a very competitive situation - another company was well along in negotiations with Racal. Goldman Sachs has such a good presence in the United Kingdom and such broad knowledge of the telecommunications business that in just two weeks we were able to complete the due diligence and put together an offer that brought Racal to Global Crossing. The success of this transaction, which helped to cement our pan-European presence, also depended on the willingness of Goldman Sachs to put up capital from its own balance sheet.
"As advisor to Softbank and Microsoft in the formation of Asia Global Crossing, the firm leveraged its broad knowledge of the Asian markets and relevant advisory expertise to bring our companies together in a very powerful relationship in the region. Goldman Sachs worked to the mutual benefit of the partners to overcome some very complex issues in the development of an advanced communications network in Asia.
"Apart from our efforts in Asia, Goldman Sachs worked for months with Global Crossing, helping us to deal with a highly complicated set of financing covenants and requirements so that we could reorganize our capital structure. This effort, which included a very large syndicated credit facility to refinance our project financing, has put us in a significantly stronger capital position as we continue our global expansion."
- Goldman Sachs served as financial advisor in the $1.6 billion acquisition of Racal Telecom.
- Goldman Sachs arranged a $1.1 billion syndicated loan to finance the Racal acquisition.
- The firm acted as joint lead manager in arranging a $3 billion credit facility as part of a major recapitalization of Global Crossing.
- The firm advised Softbank and Microsoft in their joint venture with Global Crossing to form Asia Global Crossing, which had an implied value at inception of $7 billion.