Major broadband service provider NorthPoint Communications Inc. Thursday
closed on $250 million of secured credit facilities.
The sole lead arranger and syndication agent for the credit facilities, which
consists of $250 million in committed financing and $50
million in the form of a pre-approved incremental facility, is Goldman Sachs Credit Partners L.P. (GS).
which specializes in providing high-speed Internet access over existing phone
lines using digital subscriber line (DSL) technology, recently announced its
plans to expand its network to 60 major U.S. markets — or approximately half
of all U.S. homes and businesses — by the end of next year.
“These facilities further strengthen NorthPoint’s balance sheet and position us
for continued growth,” said Henry Huff, NorthPoint’s chief financial officer.
“This additional financing builds on our strong base of over $530 million of
funded equity and will enable NorthPoint to continue to execute on its plan to
establish the nation’s most expansive broadband network.”
NorthPoint Communications, which targets small- and mid-sized businesses,
operates DSL-based local networks in 33 major markets, spanning 60 metropolitan
statistical areas (MSAs), and expects to reach over 60 markets and 110 MSAs by
the end of 2000.
One of NorthPoint’s toughest competitors is Covad
Communications Inc. (COVD),
which targets consumer markets across the country through partnerships with a
number of regional ISPs, including giant MindSpring Enterprises (MSPG).