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.
