Jan 17, 2003 : DSL.net Secures Credit, Integrates NAS
📅 - Business broadband communication services provider DSL.net (dsl.net) announced on Friday that it has arranged a $15 million revolving credit facility, under which $6.1 million is currently available.
The company also said it has taken steps to integrate the network assets, customers and employees recently acquired from Network Access Solutions Corporation (NAS).
The credit facility, says the company, has a five year term. DSL.net will be able to draw funds on a revolving basis and be required to make interest-only payments for the first two years. And the end of this period, any drawn amounts will be repaid over a three-year period. Availability under the facility is based on guarantees received by the bank from certain DSL.net stockholders.
"The new credit facility will be available for general corporate purposes," said Robert J. DeSantis, chief financial officer of DSL.net. "We're pleased to have been able to arrange for this additional funding to support our continued growth. We believe that this financing demonstrates our investors' confidence in our financial prospects."
In the interest of integrating the NAS assets, DSL.net has contacted subscribers serviced by the NAS network to notify them of the ownership change and minor changes to their invoices, as well as establishing a customer center to provide information and receive feedback.
The company has evaluated positions within the organization, and will move to reduce the combined workforce by approximately 15 percent to about 225 employees. DSL.net says it has also implemented a plan to further trim costs without impacting service, by identifying overlaps in facilities, support and network coverage.
The company also said it has taken steps to integrate the network assets, customers and employees recently acquired from Network Access Solutions Corporation (NAS).
The credit facility, says the company, has a five year term. DSL.net will be able to draw funds on a revolving basis and be required to make interest-only payments for the first two years. And the end of this period, any drawn amounts will be repaid over a three-year period. Availability under the facility is based on guarantees received by the bank from certain DSL.net stockholders.
"The new credit facility will be available for general corporate purposes," said Robert J. DeSantis, chief financial officer of DSL.net. "We're pleased to have been able to arrange for this additional funding to support our continued growth. We believe that this financing demonstrates our investors' confidence in our financial prospects."
In the interest of integrating the NAS assets, DSL.net has contacted subscribers serviced by the NAS network to notify them of the ownership change and minor changes to their invoices, as well as establishing a customer center to provide information and receive feedback.
The company has evaluated positions within the organization, and will move to reduce the combined workforce by approximately 15 percent to about 225 employees. DSL.net says it has also implemented a plan to further trim costs without impacting service, by identifying overlaps in facilities, support and network coverage.
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URL source: http://www.thewhir.com/marketwatch/dsl011703.cfm
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