Aug, 2001 : Primus Obtains $37 Million In Additional Financing
📅 - Primus Telecommunications Group, Incorporated (primustel.com), a global facilities-based total service provider, yesterday announced that it has secured approximately $17 million from a vendor to finance previously committed network capacity purchases, and has consummated a transaction financing accounts receivables of its wholly-owned Canadian subsidiary.
Under the latter transaction, Primus Canada will periodically sell certainof its account receivables to Textron Financial Canada Limited, an affiliateof RFC Capital Corporation (rfccapitcal.com), for cash proceeds of up to approximately US$20 million depending in part upon the level of customer receivables.
Currently, Primus Canada represents approximately 15% of Primus's globalrevenues. At the end of the first quarter 2001, Primus's mix of geographicrevenues (before one-time charges) was 46% from North America, 29% fromEurope, and 25% from Asia-Pacific.
"Being able to consummate these transactions in an otherwise difficultfinancing environment supports our belief that Primus's remainingunencumbered asset base of over $150 million of accounts receivable and inexcess of $350 million of net property, plant and equipment represents anattractive collateral pool for senior secured lenders," K. Paul Singh,chairman and CEO of Primus, said in a statement.
He added that Primus will continue to pursue additional financingopportunities in the future.
Under the latter transaction, Primus Canada will periodically sell certainof its account receivables to Textron Financial Canada Limited, an affiliateof RFC Capital Corporation (rfccapitcal.com), for cash proceeds of up to approximately US$20 million depending in part upon the level of customer receivables.
Currently, Primus Canada represents approximately 15% of Primus's globalrevenues. At the end of the first quarter 2001, Primus's mix of geographicrevenues (before one-time charges) was 46% from North America, 29% fromEurope, and 25% from Asia-Pacific.
"Being able to consummate these transactions in an otherwise difficultfinancing environment supports our belief that Primus's remainingunencumbered asset base of over $150 million of accounts receivable and inexcess of $350 million of net property, plant and equipment represents anattractive collateral pool for senior secured lenders," K. Paul Singh,chairman and CEO of Primus, said in a statement.
He added that Primus will continue to pursue additional financingopportunities in the future.
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