Rhythms NetConnections Taps Cisco, GATX for $75 Million
Page 1 of 1
In a play that demonstrates that the increasing popularity of broadband demand is no fluke, Digital subscriber line (DSL) firm Rhythms NetConnections Inc. secured $75 million from financial services company GATX Capital Corp. and Cisco Systems Capital Corp.
GATX invested $50 million, with Cisco chipping in the remaining $25 million. In conjunction with its investor affiliations, GATX has now underwritten a total of $126.5 million of lease financing for Rhythms (RTHM) over the last two years. This latest round brings the total investment by GATX (GMT)and Cisco (CSCO) to about $200 million.
Rhythms will use the funds for the continued deployment of its national network, which is expected to reach 70 markets and more than 100 metropolitan statistical areas by the end of 2000.
Rhythms provides managed Internet access and networking services for businesses and consumers, based on DSL connections that are approximately 125 times faster than conventional dial-up modems. The company offers its services through its channel partners, including competitive local exchange carriers (CLECs), interexchange carriers (IXCs), Internet service providers (ISPs), and network integrators.