August 4, 2009
VC Firm, CoBank Invests $13 Million in FiberLight
Based in Alpharetta, Georgia, fiber optic ethernet provider, FiberLight announced that it had raised $13 million in debt offering from CoBank. The company had acquired its first debt offering from within the capital markets.
FiberLight is a company that provides internet service providers with fiber optic ethernet, wavelengths, IP, SONET, and dark fiber optical transport solutions. Some of FiberLightâ€™s clientele include telecom companies, wireless, government and international agencies. Furthermore, FiberLight has over 500,000 miles of fiber optic networks throughout key growth areas in the United States, and the company offers a robust network throughout several states on the Atlantic sea board and in the Deep South including Georgia, Maryland, New York, Florida, Virginia, and Texas; as well as Washington DC. FiberLight also has intercity connections in Chicago, San Francisco, Boston, Denver, and Seattle.
According to Jim Lynch, who is both the companyâ€™s chairman and also managing partner with FiberLightâ€™s primary investor, Thermo Capital, FiberLight has shown a great deal of financial discipline in the market for the past four years and this is what got the company to be eligible for this funding that it had raised today. Mr. Lynch further added that raising this funding shows how sound the companyâ€™s business practices and financial strategies are. Furthermore, as far as Thermo Capital and FiberLightâ€™s board of directors are concerned, this will also allow FiberLight to add another 500,000 miles to its fiber optic network.
According to FiberLightâ€™s president, Kevin B. Coyne, the team at FiberLight wants the company to grow in a responsible way that would not only demonstrate 20% in annual growth, but also to have similar growth in the companyâ€™s EBITDA. There is one sound way that FiberLight can achieve these goals and that is to own up to its assets, which are the companyâ€™s fiber optic networks, which deliver customer satisfaction to both the companyâ€™s private and government clients. Proceeds from this funding will go to the above mentioned items that are of FiberLightâ€™s concern. Mr. Coyne further stated that it is exactly this strategy that has kept FiberLight able to exceed the averages for growth in its respective industry.
CoBank is a cooperative bank that helps business in the rural United States and its net worth is over $63 billion. CoBank is based on the outskirts of Denver, Colorado, and serves all fifty states in the United States. The bank provides loans, leases, and financing to communications, energy, and water companies.
For more information about FiberLight, click here.
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