Contingency-heavy MFN closer to closing finance circle
Metromedia Fiber Network Inc. issued a progress report on its contingency-heavy financing circle. The company today says it has secured $150 million in financing, from Citigroup and others, for a total of $330 million in commitments, including $180 million already promised.
Under the most recent commitment letter, Citicorp would commit to purchasing $62.5 million in notes, with other lenders committing to the remaining $87.5 million. The company must still raise $50 million from "others" and $200 million in vendor financing.
The arrangement comes on the heels of one previously announced, when on Aug. 1, MFN landed a two-week extension on Citicorp's commitment letter. The deal would ensure $62.5 million if MFN could raise $287.5 million from other sources and $200 million in vendor financing. At the time, MFN had the $180 million committed and was negotiating for the rest.
On Aug. 15, the extension deadline, MFN said the negotiations were ongoing. "The company will not be consummating any financing on or before the Aug. 15, 2001 expiration of the Citicorp commitment letter," it said then.
An MFN spokeswoman did not return calls by CEDaily's deadline.
At that time, the company also reported a second-quarter net loss of $205 million, or 34 cents a share, although its $91.7 million in revenue exceeded its guidance.