Vocus renegotiates Southern Cross IRU Capacity Agreements

Posted on September 20, 2012

Vocus renegotiates Southern Cross IRU Capacity Agreements

Vocus Communications Ltd. (ASX:VOC) today announced it has renegotiated its historical IRU supply agreements and purchased additional capacity on the Southern Cross Cable quadrupling capacity between Australia and New Zealand to the USA.

The renegotiation brings all historical purchases under a single new agreement at current rates.

The additional investment provides the company with its largest ever increase in capacity, ensuring Vocus has the ability to cater for growing bandwidth demands.

Key aspects of the deal:

  • Single new agreement for historical and new capacity
  • Results in historical capacity at overall lower rate
  • Capacity 400%-450% of previous agreements (depending on path configuration)
  • Increased asset and corresponding liability added to balance sheet
  • Secured equivalent vendor finance terms
  • Monthly repayments only increase by ~24%
  • Asset life in excess of 13 years and will be repaid over 6 years.

James Spenceley, Vocus CEO, stated "The renegotiation of the existing capacity and the huge increase in new capacity sets Vocus up for future capacity demands of our customers and potential customers."

For more information:

James Spenceley

Chief Executive Officer

T: 02 8999 8999


About Vocus

(ASX:VOC) Vocus Communications is an ASX listed leading telecommunications provider of Data Centre, Dark Fibre and International Internet connectivity across Australia, NZ, Singapore and the US. The company provides high performance, high availability, and highly scalable communications solutions, which allow service providers to quickly and easily deploy new services for their own customer base.