Rapid Link Completes Initial Round of Debt Financing Transaction
4/9/2008 8:46:00 PM (Marketwire)
Press Release Source: Rapid Link, Inc.
Rapid Link Completes Initial Round of Debt Financing TransactionWednesday April 9, 9:46 pm ET
Financing of up to $7 Million to Support Growth and Acquisition Strategy
OMAHA, NE--(MARKET WIRE)--Apr 9, 2008 -- Rapid Link, Incorporated (OTC BB:RPID.OB - News), a leading provider of Broadband and Diversified Communication Services, announced today the closing of the initial round of debt financing.
The financing agreement provides for $1.8 million in funding that Rapid Link will use to retire certain short-term debt, and to restructure all remaining short-term notes payable by Rapid Link in to long-term debt. Additionally, the financing will provide the working capital Rapid Link needs to aggressively pursue its business strategy in the Alternative Access and Broadband Services marketplace. A secondary component of the agreement calls for additional financing of up to approximately $5.2 million. Rapid Link plans to use this component as a working capital resource, as well as for the acquisition of certain wireless and carrier assets in the Dallas, Texas metropolitan area. Rapid Link expects to close on the secondary round of this financing transaction in the summer of 2008, thus furthering its growth and expansion.
John Jenkins, Chairman and CEO of Rapid Link, commented, "This debt financing arrangement is a perfect fit for our company at this juncture in time, and accomplishes a myriad of objectives. The main objective was to raise enough money to finance our growth and acquisition strategy, while minimizing the dilution to our shareholders in a tough credit market. Clearly, we accomplished our main goal, which should position Rapid Link well for the years to come."
About Rapid Link, Incorporated
Rapid Link, Incorporated is a Diversified Communication Services company providing various forms of voice and data transport services to wholesale and retail customers around the world. Rapid Link's retail product focus involves supplying bundled Internet and voice services. The company's strategy involves offering broadband access via its own facilities to ensure reliable delivery of its content without compromise from incumbent monopolies. Rapid Link strives to serve its customers unique communications needs with a focus on cost efficiency and quality of service. Through its operating headquarters in Omaha, Nebraska, Rapid Link supports customers with in-house, multi-lingual customer service, proprietary scalable billing systems, and experienced communications professionals.
For more information, visit www.rapidlink.com