New Edge Networks announced Wednesday reaching an agreement with its principal investors and lenders to convert $131 million in vendor and bank debt to equity and raise an additional $15 million.
The restructuring leaves the Vancouver, Wash.-based competitive local exchange carrier with $35 million in total debt with no principal or interest payments due until late 2004, the company noted in a statement.
New Edge Networks, which expects the transaction to close within two weeks, plans using the money to support sales, grow revenue and lead the company to profitability.
Private equity investors in the company’s latest financing round, led by Goldman Sachs & Co., include venture firms Accel Partners, Crosspoint Venture Partners and Greylock. Existing debt holders and lenders converted portions of their respective debt to equity.
