NEW YORK, March 22 /-/ -- FiberNet Telecom Group, Inc. (Nasdaq: FTGX), a leading provider of complex interconnection services, announced today that it has entered into a new $25 million credit facility with CapitalSource. The initial borrowings under this facility have been used to repay in full the Company's existing indebtedness. The facility further provides additional capacity to fund expansion and working capital.
With a maturity of five years, the credit facility consists of a $14 million term loan, with a floating interest rate of LIBOR + 3.5%; a $6 million revolving loan and letter of credit facility, with a floating interest rate of LIBOR + 3.0%; and a $5 million capex loan facility, with a floating interest rate of LIBOR + 3.5%.
"We are very pleased to have established this new lending relationship with CapitalSource," said Jon A. DeLuca, President and CEO. "This facility provides us with long-term capital and enhanced liquidity to support the continued growth of our business."
As of the closing, the facility's outstanding borrowings consisted only of the $14 million term loan. In addition, the Company issued $5.7 million of letters of credit under the revolving loan and letter of credit facility to replace its existing letters of credit. The credit facility includes other terms and conditions that are customary for a financing of this type.
The DiBari Group, LLC acted as placement agent for the Company in connection with this transaction.
For additional information, please refer to FiberNet's Form 8-K as filed with the SEC.
About CapitalSource:
CapitalSource is a leading commercial lending, investment and asset management business focused on the middle market. As of December 31, 2006, CapitalSource managed a $17 billion portfolio, including $8.6 billion in its commercial lending and investment business, $5.8 billion in its residential mortgage investment business, and $2.4 billion managed on behalf of third parties. Headquartered in Chevy Chase, Maryland, the company has approximately 550 employees in offices across the United States and in Europe. For more information, visit http://www.capitalsource.com.
About The DiBari Group:
The Dibari Group is a financial advisory and consulting firm dedicated to procuring debt capital for both public and private companies in various stages of development. The firm has supported high growth companies for over 10 years with an emphasis in communication, software, technology, healthcare & life sciences.
About FiberNet Telecom Group, Inc.:
FiberNet Telecom Group, Inc. owns and operates integrated interconnection facilities and diverse transport routes in the two gateway markets of New York/New Jersey and Los Angeles, designed to provide comprehensive broadband interconnectivity enabling the exchange of traffic over multiple networks. FiberNet's customized connectivity infrastructure provides an advanced, high bandwidth, fiber-optic solution to support the demand for network capacity and to facilitate the interconnection of multiple carriers' and customers' networks. For additional information about FiberNet, visit the Company's website at ftgx.com.
Various remarks that we may make about FiberNet's future expectations, plans and prospects constitute forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. Such remarks are valid only as of today, and we disclaim any obligation to update this information. Actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors, including those discussed in FiberNet's most recent Annual Report on Form 10-K, which is on file with the Securities and Exchange Commission.
