DSL.net, a broadband service provider, closed $30 million in new financing led by Deutsche Bank. VantagePoint Venture Partners, one of DSL.net’s current major institutional shareholders, is the other participant in the financing. DSL.net plans to use the money to accelerate the roll out of
its recently introduced integrated voice and data service over its network in the mid-Atlantic and northeast states, fund strategic acquisitions and retire outstanding debt at a discount. The financing package is comprised of $30 million of three-year senior secured notes, bearing interest at 1.23% per annum, and
warrants to purchase approximately 158 million shares of DSL.net common stock for $.38 per share. The company said the new funding would enable it to become cash-flow positive based on its current plans and projections.
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- In June 2003, DSL.net launched an integrated voice and data T1 connection featuring either 8-line or 16-line telephone service. The service is being introduced in the Washington, D.C. metro area. The new NETgain One service is a result of DSL.net’s recently announced agreement to acquire substantially all of the assets and subscribers of TalkingNets, a voice and data communications provider that offers softswitch-based services. The acquisition is expected to close in Q3, but the companies are already operating jointly. DSL.net intends to roll out integrated voice and data services in other markets, including New York, Boston and business-intensive regions in Connecticut.