Metromedia Fiber Network secured another piece of a complex financing puzzle today, with a $50 million commitment letter from an unnamed investor.
The letter, for a $50 million convertible debt investment, expires Sept. 17 and is subject to a cyclical set of terms, each dependent on the other. The latest commitment depends on closing the $150 million note facility led by Citicorp; closing the $180 million already committed; closing of vendor financing; the results of the investor's due diligence of MFN; and assorted paperwork.
The funds help complete MFN's financing puzzle; the company's $150 million note was subject to raising funds from vendor financing and "other" sources. The company had numerous commitments, and as of late August, needed only $50 million more.
Neither of MFN's designated spokesmen could be reached by CEDaily's deadline.
Yesterday, the company announced it had achieved the note holder approval needed to secure the $275 million in vendor financing commitments.