WAM!NET Secures $100 Million Working Capital Facility
Press release from the issuing company
EAGAN, Minn.--Oct. 4, 2001-- WAM!NET Inc., a global provider of content hosting and distribution solutions, today announced that it has closed on a $100 million working capital facility from affiliates of Cerberus Capital Management, L.P., a New York City-based private investment firm.
Company officials stated that the financing is expected to be the last round of funding required for the company to reach profitability and become operating cash-flow positive in 2002.
WAM!NET Chairman and Chief Executive Officer, Ed Driscoll, commented on the funding and the progress WAM!NET has made in establishing a foundation for long-term profitable growth. "Cerberus' financing of WAM!NET is indicative of their confidence in not only our business model and proven services portfolio, but also, our excellent market opportunities and solid prospects for driving significant, ongoing revenue growth. At the same time, with the assistance of TenX Capital Partners, we have taken necessary, aggressive actions in the last several months that have allowed us to align our cost structure, sales and marketing efforts, and other operating strategies company wide with WAM!NET's revenue and growth targets. We now have in place the right cost structure, a team of world-class employees, a large, established customer base, and a portfolio of in-demand information technology services.''
"WAM!NET has created a significant market position and the technology and personnel to take advantage of that position,'' said Michael Green, managing partner, TenX Capital Partners (www.tenx.net), an investment, operations management and executive services firm. TenX has supported WAM!NET in the successful accomplishment of its strategy to establish a solid financial base and drive business results.
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