PAETEC may be just as vulnerable to the ongoing economic recession as the rest of us, but one area where it appears to be gaining the upper hand is in paying down its debt. The Rochester, NY-based CLEC announced this week that it has reduced its debt load by $10 million--the second time in six months.
This latest debt reduction reflects an ongoing trend for PAETEC. PAETEC cut its borrowing by $20 million since the end of the second quarter of 2009. In addition to paying down its debt, PAETEC earlier this year repositioned about $300 million in debt out to 2017.
Reducing its debt load is a positive move for a service provider that has suffered a number of setbacks due to the current economic recession. During the third quarter, the CLEC reported $6.5 million in losses and in 2008 it had to cut 5 percent or 200 employees from its workforce.
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Paetec acquired McLeodUSA in September 2007
Paetec acquired Allworx a month later