Flag Telecom Gets $300 Million in Funding

PHILADELPHIA, Aug. 21 -- Flag Telecom Holdings Ltd said its Flag Asia Ltd. subsidiary got $300 million in funding for construction of its Asian network. The new syndicated credit facility will release some of the funds Flag Telecom had previously committed to the project, giving it greater cash resources to fund other projects and improve its liquidity.
Flag Telecom initially funded the Flag North Asian Loop network using its own cash and proceeds from preselling capacity to Level 3 Communications Inc. The credit facility was arranged for Flag Asia by Westdeutsche Landesbank Girozentrale of New York.
Construction of the Flag North Asian Loop network has already begun. The Eastern leg of the network, linking Hong Kong to Japan, was developed by Level 3.