offering of $350 million of senior notes due in 2007 in a private placement.

And GlobeNet, through subsidiary Atlantica Network (Bermuda) Ltd., revealed it has just awarded a supply contract to leading Paris-headquartered telecommunication supplier Alcatel to construct its massive cable network.

Execs at both companies were keeping the exact value of the contract under wraps last night but one confirmed it was worth "several hundred million dollars''.

The offering's proceeds will be used to finance some of the development costs of GlobeNet's planned fibre optic cable system known as Atlantica-1, which will connect the US, Bermuda, Brazil, Venezuela and Argentina.

The securities have not been registered under the US Securities Act or qualified by prospectus under Canadian securities laws, and may not be offered or sold in the US or Canada without registration, prospectus or exemption.

Alcatel -- a global telecommunications network supplier with 120,000 employees in 130 countries and sales of $21.3 billion -- is currently working on a number of contracts around the world valued at around $2.5 billion.

It will supply all the terminal equipment for the stations in GlobeNet's Atlantica-1 project, including the transmission network equipment and network management system.

Alcatel chief executive of submarine networks business Christian Reinaudo said the company had become a leader in its field by doing its homework.

"Our foresight in investing in our facilities, not only in research and development but also in manufacturing and installation is enabling us to offer very high capacity intercontinental links very quickly,'' he explained.

"And this means our customers can cope with the explosive traffic demands.'' GlobeNet chairman and CEO Mike Kedar -- whose reputation for driving telecommunications companies to capitalise successfully on emerging opportunities -- said awarding the contract meant a new phase for the company.

"This is a very exciting step for GlobeNet as we expand our submarine network beyond our current system between Bermuda and the US,'' he said.

The network is to be completed in two main phases.

The ring between Bermuda, New Jersey, Venezuela and Florida should be finished by the end of 2000.

Links between New Jersey, Bermuda and Brazil will be available for service by September next year.