Covad has obtained a two-year $50 million senior secured revolving credit facility with the Santa Clara, Calif. based Silicon Valley Bank

April 14, 2006

1 Min Read

SAN JOSE, Calif. -- Covad Communications Group, Inc. (AMEX:DVW - News), a leading national provider of integrated voice and data communications, today announced that it has obtained a two-year $50 million senior secured revolving credit facility with the Santa Clara, Calif. based Silicon Valley Bank. The credit facility is available for general corporate purposes.

"We are pleased to establish this relationship with Silicon Valley Bank," said Christopher Dunn, Covad chief financial officer. "The availability of this credit facility validates Covad's commitment to improving its balance sheet liquidity and provides us with increased flexibility to refinance existing liabilities."

As part of the transaction, Covad has redeemed its existing collateralized customer deposit liability with AT&T, one of Covad's largest wholesale partners. This liability has been terminated and AT&T has relinquished its related liens on Covad's assets. Covad plans to borrow funds available under the revolving credit facility as needed.

In conjunction with securing the credit facility, Covad also announced that it will withdraw the universal shelf registration statement it filed with the Securities and Exchange Commission in October 2005 without making any sales under that registration statement.

Covad Communications Inc.

Subscribe and receive the latest news from the industry.
Join 62,000+ members. Yes it's completely free.

You May Also Like