Feb 7, 2002 : FastNet Secures $2.3m Financing


📅 - FastNet Corporation (fast.net -> hostinger.com), a provider of Internetsolutions including broadband connectivity, Web hosting and Web design,announced today they secured $2.3 million of financing from an as-yetunnamed financial institution. The proceeds will allow FastNet to retireover $12 million in capital lease obligations and build upon its foundationwith a strengthened balance sheet, reduced debt level, and a funded businessplan, the company said.

"FastNet has worked hard to deliver solid financial results that would meetor exceed our forecast. Today we have accomplished our goal of excellentfinancial health," said Stephen Hurly, CEO of FastNet. "At the end of 2000,we had $11.8 million in capital lease obligations and $25.5 million in totalliabilities. With the conclusion of recent negotiations, we brought thisamount down to under $400,000 in capital lease obligations, representing areduction of $11.4 million, and $14.5 million in total liabilities. Weachieved this debt reduction with a total cash outlay of only $3.6 million.Basically, we exchanged $11.4 million in capital lease debt for a $2.3million twenty-four month, 4% term loan. This is a great success."
"We are delighted to welcome another financial partner to the FastNetfamily," Mr. Hurly added. "This new capital is validation of FastNetdelivering on its promises. Our new partner dug deep into our financialhealth and validated our efforts with a capital commitment."
During 2002, FastNet will continue to focus on its business plan of organicsales to new customers, cross-selling additional products to the existingcustomer base, and when the right partner is available, throughacquisitions.
As part of the growth strategy, FastNet has recently announced theacquisition of Superlink, an Internet Service Provider in the New Jerseymarket. Superlink brings a direct connect customer base, networkinfrastructure in New Jersey, and an immediate cash flow contribution.

Reads: 1927 | Category: General | Source: TheWHIR : Web Host Industry Reviews
URL source: http://www.thewhir.com/marketwatch/fn020702.cfm

Company: fast.net [fast.net -> hostinger.com]

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