NaviSite Financing Relieves Stress
theWHIR.com on April 21, 2006
Related Subjects: navisite
NaviSite Financing Relieves Pressure
April 21, 2006 — Web hosting provider NaviSite (navisite.com) announced lately that its stock has more than doubled in value in recent weeks, soon after the company secured far more than $ 70 million in new financing through a Greenwich, Connecticut hedge fund.
A handful of months ago, NaviSite was facing bankruptcy, owing an estimated $ 60 million in debts coming due more than the next two months. It was instructed to repay a $ 20 million bank loan by the end of secured loans April and quickly owed nearly $ 35 million from its June 2004 acquisition of a Cambridge-primarily based former rival.
The deal with Greenwich-based Silver Point Finance now eliminates both of those deadlines, paying off the loans in full and extending the new due date until 2011. Silver Point has also supplied NaviSite with a $ 3 million loan for brief-term borrowing wants.
NaviSite reported a $ 4 million net loss in its most recent quarter on about $ 26.3 million in revenues, with about half of the quarterly shortfall resulting from interest payments. The new loan package [...] Read More…