OnFiber takes on debt for M&A

OnFiber has obtained a $25 million senior secured credit facility from Comerica Bank, which the carrier will use to repay existing debts and to fund both organic growth and acquisitions.

The metro fiber wholesaler made two acquisitions in the summer of 2004, amid a $12 million equity round from existing investors. That June, OnFiber purchased the assets of Boston wholesaler C2C Fiber Networks. Its purchase of Portland General Broadband the following month gave OnFiber an entry into the Portland, Ore., market.

In 2002, the company acquired metro Ethernet service provider Telseon.

Last month, OnFiber launched a new service that uses fiber to bridge the gap between enterprises and alternative telecom providers such as interexchange carriers and competitive carriers. Following its introduction in San Francisco and Washington D.C., the company vowed to bring the service to 15 top-tier cities by the end of the year.