Call-Net and 360networks

Call-Net Enterprises Inc. announced on August 28, 2000 that it has signed agreements with 360networks inc. that include: the sale/indefeasible right of use (IRU) of excess dark fibre in Canada and the United States; the purchase/IRU of local access fibre and other long haul fibre in Canada and the United States; a swap of certain fibre routes; and a commitment to purchase other products and services from 360networks over the next five years.

Call-Net expects to receive in excess of $240 million in cash proceeds for its dispositions, following release of certain short-term holdbacks to ensure a proper transition of the assets. As part of the transaction, Call-Net has agreed to purchase (once completed) $21 million of fibre from 360networks, consisting of a combination of local access intracity fibre and long haul intercity fibre. Call-Net has also committed to purchase $15 million of products and services from 360networks over five years.

Joe Milstone, in-house counsel for Call-Net, called on Jeff Barnes, Leslie Johnson, Doug Scott, Michael Wunder, Ken Chun, Alex Roberts, Peter Bouzalas and Chuck Rich of Fraser Milner Casgrain to assist; and David Klassen, in-house counsel for 360networks, was assisted by Bruce Tattrie, Joe Garcia and Paul Armitage of Campney & Murphy.