Birch Communications sets sights on new funding

Even if the capital markets are recovering from one of the worst recessions since The Great Depression, CLEC Birch Communications, which was acquired by Access Integrated Networks last year, is looking to reel in $100 million in new funding through a private offering of its senior secured notes. Birch says they want to use the new funds to not only pay off some bills, but also purchase outstanding warrants of common stock and maybe use it to fund possible acquisitions.

At this point, Birch could not divulge any information on its plan because it is currently in a quiet period until January. But as an Xchange article suggests, other similar offerings for larger service providers such as Clearwire and TELUS worked out well. Since Birch was acquired by Access Integrated Networks last year, the CLEC has been migrating away from leveraging ILEC lines to its own private softswitch network.

For more:
- Xchange has this article

Related articles

A closer look at CLECs
CLEC levees holding for now amid economic storm
FCC: CLEC share shrinks to 17.1%

Suggested Articles

The data center sector is on track for another record year for mergers and acquisitions, according to Synergy Research Group.

VMware announced on Friday that it's buying privately held Veriflow to beef up its pervasive network monitoring and troubleshooting capabilities.

Cisco has axed 488 employees, according to a filing with the State of California.