ICG Scores $750 Million Investment
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Broadband solution provider ICG Communications Inc. Monday won $750 million in capital from investment firms to help boost its products and services for Internet service providers.
Firms who contributed to ICG's (ICGX) funding include affiliates of Liberty Media Corp., Hicks, Muse, Tate & Furst Inc. and Gleacher Capital Partners. Liberty lead the way with $500 million in funding, Hicks Muse followed with $230 million and Gleacher chipped in $20 million. The investors are purchasing 8 percent convertible preferred stock and warrants. The transaction is expected to close within 60 days.
Funds will be used for ICG's expansion plan into 16 new major metropolitan areas, to add an estimated 850,000 access lines and ports, and to purchase equipment and facilities required to execute the company's business strategy. The focus of the 2000 business strategy is to provide products and services that will enable ICG to capture increased market share ISP, application service provider and local business markets.
"We are now solidly positioned to expand our network, accelerate our line growth and extend our portfolio of products and services that will deliver significant EBITDA growth in 2001," said J. Shelby Bryan, ICG's chairman and chief executive officer. "The investors possess a very high level of industry experience and vision."