MFN secures $150 million funding commitment

Metromedia Fiber Network (MFN) has landed a funding commitment for a $150 million note facility led by Citicorp USA. The commitment letter replaces a previously announced $350 million commitment.

Citicorp is committing to purchase $62.5 million in notes, with other lenders committing to the remaining $87.5 million. The $150 million note facility is contingent on MFN receiving $230 million in funding commitments from other sources and $200 million in vendor financing. Also, other creditors will have to agree to defer any obligations MFN has to them.

According to Vik Grover, senior analyst with Kaufman Brothers, in a report issued today, “MFN appears to be putting the finishing touches on a total funding package of $580 million, which we expect to fully fund a revised plan focused on near-term business in major markets in the U.S., Europe, and the Pacific Rim.”

Grover added he expects MFN to receive the funding needed to “maximize the substantial broadband opportunity.”

--Glenn Bischoff, Senior Writer