RCN Adds $1.25B in Funding3/21/1999 7:00 PM Eastern
Princeton, N.J. -- RCN Corp. said it added $1.25 billion in
new financing through a $250 million investment from a leveraged-buyout firm and a $1
billion bank facility.
RCN, which is building fiber networks on the East and West
Coasts, said the investment came in the form of a senior convertible preferred-stock sale
to Hicks, Muse, Tate & Furst Inc. The bank facility came from Chase Securities Inc.
Altogether, RCN has cash and available capital of $2.25
billion to fund network construction and continuing operations.
A Hicks, Muse equity fund committed to buy up to $250
million in preferred stock due 2014.
Hicks, Muse partner Michael J. Levitt will join RCN's
board of directors. Chase Securities initiated the deal and advised RCN.
The credit facilities, from Chase Manhattan Bank, are
available to RCN immediately.