Sunday, July 27, 2008

XO Holdings Secures $780 Million in Financing

XO Holdings has raised $780 million through the issuance of two new series of preferred stock in order to retire senior debt, fund future growth initiatives and provide ongoing working capital for the business. XO Holdings is the parent company of XO Communications and Nextlink.


As a result of this fundraising, all the company's indebtedness for borrowed money, amounting to approximately $395 million under its Senior Secured Credit Facility as well as approximately $78 million under its $75 Million Senior Note issued in March 2008 (both figures inclusive of accumulated interest), has been retired in full. The remaining $307 million of proceeds, plus any proceeds from shares purchased by minority stockholders and reduced for transactional expenses, will be used to fund the company's long-term strategic growth plan which will accelerate revenue growth and improve operational efficiencies, as well as provide working capital for its businesses. http://www.xo.com

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