EGHAM, U.K. -- Viatel, the pan-European communications company, has finalised its funding deal with six investors including Morgan Stanley & Co. Incorporated to raise over $52 million. This transaction was completed today and the funds have been released in a single draw down to the company.
The announcement is exciting news for Viatel and confirms confidence in the re-emergence of the company into the European Communications Market.
The investment is in the form of senior secured convertible debt securities with 8% interest, payable in cash or in kind, and maturing in 2014. The conversion price is contingent on the value of Viatel upon the occurrence of various specified liquidity events.
The term sheet for the funding agreement was signed in February 2004. The closing of the deal in just two months marks an impressive achievement for Viatel's management team, headed by CEO Lucy Woods.
Lucy Woods, CEO of Viatel said, "I am particularly delighted to have closed this financing deal in light of the tough market conditions. This is an exciting day, not just for Viatel but also for the telecommunications industry. I hope this is another indication that investor confidence is returning to the sector."
Since Viatel's relaunch as a provider of communications services across Europe, several new services have been launched and sales have accelerated rapidly as customers respond to the company's fresh approach to providing services to the business market. The funding provides the foundation for the company to continue its rapid growth.
Michael Petrick, Managing Director at Morgan Stanley said, "We are excited about being part of the financing and we look forward to the Company exercising its new capacity to capitalize on the opportunities in the European market place."
Leslie Goodman, Chairman of Viatel said, "The past year has involved a huge amount of work to restructure Viatel to best succeed in today's market.
"We're already seeing the benefits of this through improved sales and I am confident that this funding will see us through to becoming a strong and profitable business."
Viatel Holding (Bermuda) Ltd.