FiberNet reduces bank debt by $74.5 million since fourth quarter of 2002

By Sara Rosenberg

New York, Jan. 13 - FiberNet Telecom Group Inc. converted $13.4 million of senior secured indebtedness into 138.5 million shares of common stock and raised an additional $3.5 million of new equity capital in a private offering by issuing 29.2 million shares of common stock and warrants to purchase 56.9 million shares of common stock. Due to these transactions, the company has managed to reduce outstanding debt under its senior secured credit facility to $21.7 million from $96.2 million in the fourth quarter of 2002.

Bank One, Nortel Networks Inc. and TD Securities are the departing lenders that were given the 138.5 million in common stock to satisfy all outstanding indebtedness and accrued interest owed, according to a filing with the Securities and Exchange Commission.

"FiberNet has accomplished a major achievement in the last few months by reducing the outstanding indebtedness under its credit facility by 77%," said Michael S. Liss, president and chief executive officer, in a news release. "We are now well-capitalized and optimistic about strategic opportunities in the new year and the potential for renewed organic growth."

FiberNet is a New York fiber-optic network company.

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