New Edge Networks Completes Funding with $77.5 Million Financing Round

VANCOUVER, Wash., April 24 -- New Edge Networks, a national broadband access provider primarily focused on small and mid-size cities, has raised $77.5 million in private equity and debt financing.
New Edge Networks received $40 million in private equity from its current investors and $37.5 million in senior secured credit facilities from a new lender. New Edge Networks will use the proceeds to complete its existing broadband network build-out and to generate additional revenue from the sale of its broadband services, including high-speed Internet access and wide area network services.
The private equity investors in New Edge Networks' fourth round of funding include GS Capital Partners III, L.P. and related investment partnerships of Goldman, Sachs & Co., Crosspoint Venture Partners, Greylock and Accel Partners. First Union National Bank, a new financial partner for New Edge Networks, is providing a term loan and revolving credit facility. "We believe that this round of financing will fully finance our existing business plan," said Dan Moffat, president, CEO and co-founder of New Edge Networks. "We are pleased that this first tier group of investors believes in our broadband business and our management team's ability to execute."