DSL.net Gets Last Installment of $4M by DunKnight Telecom.
2006-02-03, HostMan.biz
DSL.net, Inc., a leading nationwide provider of broadband communications services to businesses, today reported that it had received $4 million in cash as part of the second and remaining installment of a $10 million cash infusion from a new debt financing agreement that was announced late last year with DunKnight Telecom Partners LLC.
"These funds allow us to continue the roll out of our new, low-priced Duet voice and data bundled services in the New York City and Washington, D.C., metro markets," said David F. Struwas, president and chief executive officer of DSL.net. "We are focused on leveraging our high-quality VoIP (Voice over Internet Protocol) network platform in those two business-intensive markets, while also concentrating on our core broadband expertise in serving the bandwidth needs of businesses in all the markets that we serve."
The first $6 million of the $10 million cash infusion from the new debt financing announced in November 2005 was used by the Company to eliminate $30.8 million in senior secured debt due July 18, 2006, cancel all outstanding Series Z Preferred Stock that carried a liquidation preference of $15.7 million and cancel warrants to purchase approximately 191 million shares of the Company's common stock, all of which debt and equity interests were held by the Company's former senior lenders, Deutsche Bank and VantagePoint Venture Partners. The funds received from the most recent round of DunKnight financing will be used by the Company for working capital purposes, including Duet sales and marketing.
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