Cogent Communications Group, Inc. Announces Sale of $93 Million of Common Stock
WASHINGTON, D.C., June 7, 2006 - Cogent Communications Group, Inc. (NASDAQ: CCOI) today announced that the underwriters of the public offering of 9,000,000 shares of its common stock had exercised their option to purchase an additional 1,350,000 shares of stock from Cogent, Dave Schaeffer, Cogent's Chairman and CEO, and certain selling stockholders. A total of 10,350,000 shares of common stock were sold by Cogent and the selling stockholders at a price of $9.00 per share, resulting in gross proceeds, before underwriting discounts and offering expenses, of approximately $93 million. The sale of 4.35 million shares by Cogent resulted in gross proceeds to Cogent, before underwriting discounts and offering expenses, of approximately $39.15 million. The offering was completed on June 7, 2006. The closing price of Cogent's common stock on June 7, 2006 was $9.26 per share. Lehman Brothers and Bear, Stearns & Co. Inc. acted as joint book-running managers of the offering, Thomas Weisel Partners LLC acted as joint lead manager and Wachovia Securities and Friedman Billings Ramsey acted as co-managers.
About Cogent Communications
Cogent Communications (NASDAQ: CCOI) is a multinational, Tier 1 facilities-based ISP. Cogent specializes in providing businesses with high speed Internet access and point-to-point transport services. Cogent's facilities-based, all-optical IP network backbone spans 14 countries and provides IP services in over 95 markets located in North America and Europe.
# # #
Information in this release may involve expectations, beliefs, plans, intentions or strategies regarding the future. These forward-looking statements involve risks and uncertainties. All forward-looking statements included in this release are based upon information available to Cogent Communications Group, Inc. as of the date of the release, and we assume no obligation to update any such forward-looking statement. The statements in this release are not guarantees of future performance and actual results could differ materially from our current expectations. Numerous factors could cause or contribute to such differences. Some of the factors and risks associated with our business are discussed in Cogent's registration statements filed with the Securities and Exchange Commission and in its other reports filed from time to time with the SEC.