TelePacific opens $50M funding source to support M&A strategy

TelePacific has charted a growth strategy that includes both acquisitions and organic growth strategies, so the CLEC has secured an additional $50 million in funding.

According to a report in Channel Partners citing a Moody's ratings action, TelePacific now has a total outstanding loan of $485 million.

"The proceeds of the new financing will be used for general corporate purposes, including funding the acquisitions of TeleKenex and OCIX, in addition to potential other acquisitions to augment operations over the next 12 months," stated Moody's, which affirmed TelePacific's B3 Corporate Family Rating and the Probability of Default Rating.

TelePacific has been quite active on the M&A front over the past year. Most recently, TelePacific acquired both fellow CLEC Telkenex and Orange County Internet Xchange (OCIX), a colocation provider based in Orange County, Calif. Earlier, the service provider purchased Covad's broadband wireless division and 01 Communications.

For more:
- Channel Partners has this article

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