euNetworks secures €70 million loan

London-based fiber-optic network infrastructure provider euNetworks Group Ltd. (SGX: 5VT.SI) says that its German subsidiary euNetworks GmbH has secured a €70m credit loan from Barclays Bank PLC and RBC Capital Markets.

The €70 million may be used for general corporate purposes and for incremental organic and external growth, the company says (see, for example, "euNetworks plans significant expansion in London"). A portion of the new credit loan facility will be used to completely repay existing debt facilities that were entered into on May 8, 2013. In addition, the credit loan may be increased to €100m as new growth opportunities materialize.

euNetworks has the option to draw funds in multiple currencies under the revolving credit facility. Terms and conditions for the committed credit loan facility – including interest rate, total leverage incurrence test, and delayed draw feature – are favorable, the company adds.

"This is an exciting time for euNetworks, with significant opportunities identified to grow the business further," said Brady Rafuse, chief executive officer of euNetworks. "This funding enables us to further meet the growing bandwidth needs of existing and new customers across Europe. The terms of this facility are a strong reflection of the positive momentum we have seen in the business in 1H 2014. We remain focused on delivering to our targets and scaling the business further with this funding."

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