MFN lands $611 M, moves execs, lowers guidance
Metromedia Fiber Network Inc. completed the $611 million financing package it's been working on for months.
The deal includes a $150 million note purchase led by Citicorp and $230 million in convertible debt financing, of which $180 million is purchased by affiliates and $50 million by an unnamed Verizon Communications subsidiary. It also includes $231 million in vendor financing.
MFN says it also agreed with other vendors to modify existing debt payments.
Separately, the company announced senior management changes, and the integration of its AboveNet and SiteSmith acquisitions, both of which will operate under MFN. Mark Spagnolo is president and COO, reporting to Nick Tanzi, who will become CEO. Stephen Garofalo, MFN founder, will retain his spot as chair.
Finally, MFN lowered its guidance and now expects third-quarter revenue in the $91 million to $93 million range, rather than the $107 million to $115 million previously quoted. Fourth quarter revenue should reach $100 million to $103 million, compared with the original $127 million to $137 million expected.
Its anticipated EBITDA losses for third quarter didn't change, ranging from $31 million to $35 million. The company expects fourth quarter EBITDA losses in the $3 million to $9 million range, rather than a previously expected normalized EBITDA loss of $19 million to $22 million.
Its 2001 revenue guidance ranges between $360 million and $367 million, MFN says.