NEON Communications, Inc. (NASDAQ:NOPT) and Northeast Utilities (NYSE:NU) announced the finalization of an agreement under which NU has provided $15 million of additional financing to assist in the continued expansion of NEON's fiber optic network.
NU, purportedly New England's largest electric utility system, and NEON have entered into a purchase agreement for $15 million in the form of 18 percent subordinated notes due in 2008. NU may convert the subordinated notes at any time into NEON common stock at a conversion price of $6 per share, or 2.5 million shares, subject to certain anti-dilution provisions. NU, an original investor in NEON, already owns nearly 4.8 million shares of NEON's 21.3 million shares of outstanding common stock.
About NEON Communications:
NEON Communications, Inc. is a wholesale communications provider of high bandwidth fiber optic capacity and comprehensive end-to-end communications solutions to regional and national communications carriers on a 2,000-mile inter-city regional and metro network. For more information, visit www.neoninc.com.
About Northeast Utilities:
Northeast Utilities serves electric customers in Connecticut, New Hampshire and Massachusetts, and natural gas customers in Connecticut, and is a competitive energy suppliers in New England. For more information, visit www.nu.com.