Alpheus Communications, a competitive provider focused on Texas' DASH (Dallas-Austin-San Antonio-Houston) market, has received $135 million in new funding from Bank Street Group LLC to refinance its current debt and fund growth.
The new financing arrangement includes a $110 million term loan, $15 million underwritten delayed draw term loan and $10 million revolving credit facility.
In addition, the financing includes an accordion option to tap into an additional $40 million that can be used for organic and inorganic growth initiatives such as purchasing other area CLECs to expand its footprint or service capabilities.
"We are pleased to have accessed the credit markets on highly favorable terms and conditions in order to refinance our existing indebtedness and provide a solid base for future investment and growth," said CEO Scott Widham.
Using the funding to make another acquisition would not be totally out of the question.
After assuming the leadership position of the company in 2011, Widham said he wanted to expand the service provider through acquisitions, including its most recent deal to purchase Net Star Communications in December.
Given Alpheus' recent move to establish an External-Network to Network Interconnection (E-NNI) arrangement with Marcatel for access into Mexico, suggests Rob Powell at Telecom Ramblings, could be Transtelco.
Transtelco has been making a name for itself in the business services market as a U.S./Mexico border-based service provider that completed a metro fiber network in Mexico City this January.
For more:
- see the release
- Telecom Ramblings has this roundup
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Alpheus brings dark fiber to Fidelity Communications
Alpheus boosts sales power with Cbeyond veteran Matt Milliron
Transtelco wraps its Mexico City metro fiber buildout