NewSouth Communications, a CLEC based in Greenville, South Carolina, raised $62.5 million in new equity financing. NewSouth said it is now generating positive operating cash flow each month. The new funding will be used for continued growth of the business. Firms participating in this round of financing include three existing investors, Kohlberg Kravis Roberts & Company (KKR), who remains NewSouth’s largest investor, Wachovia Capital Partners, and Vaxa Capital Partners, LP. Also participating are two new investors, M/C Venture Partners and Quadrangle Group.
http://www.newsouth.com
- NewSouth’s network includes the Tekelec VXi MGC softswitch, 14 Cisco packet-based switches, 11 Lucent AnyMedia 5ESS-2000 switches, 2 Siemens Information and Communications Networks EWSD digital switches, and 80 collocations across the southeastern U.S.
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For 2002, NewSouth Communications reported annual revenue exceeding $156 million, up 25% over 2001. The number of installed lines grew by 31% in 2002 to over 210,000. The company said it exceeded its operational targets for 2001, in particular, to reduce its ongoing costs by 9%, or $14.7 million.