For any service provider, much less a competitive fiber provider, to secure new funding in a down economy is somewhat of an anomaly, yet Atlanta, Ga.-based FiberLight announced this week that it raised $13 million from CoBank. Consisting of a $10 million note and a $3 million revolving line of credit, FiberLight said this is the company's first debt offering in the capital markets.
Although the company continues to stick to a conservative capex spending mentality, FiberLight wants to leverage the new funding to expand the capabilities of its 500,000-mile optical network to meet ongoing customer demands. FiberLight has leveraged its fiber network, which stretches from Baltimore, Md., to Miami, and then from Texas to San Francisco, to deliver a suite of dark fiber, managed wavelengths, Metro Ethernet and SONET services. Unlike the 1990s build it and they will come mentality that caused a glut of fiber capacity and a slew of bankruptcies, FiberLight plans to use the new funding for growth opportunities that will provide a return on investment.
"We want to continue to grow in a responsible way that not only shows the top line compounding 20% annually but has a similar growth in our EBITDA," FiberLight President Kevin B. Coyne said in a release. "The only way our company can do that is by owning our own fiber assets, delivering a great customer experience to our enterprise, carrier and government clients and to continue to create an opportunity to enhance productivity. The money raised will be used for those three things and will be allocated only through a rigorous capital allocation process in which projects must demonstrate the strict payback model that has allowed FiberLight to exceed industry averages in growth and profitability throughout its history."
- Here's the official release
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