Metromedia Fibre Network, the provider of internet infrastructure which is building an internet services exchange in Citywest, has received a commitment of $150 million (€164 million) as part its refinancing package led by US bank Citigroup, the company said. Fresh funding is vital if the group is to remain in business.
Citigroup had said it would provide $62.5 million, if other sources agreed to provide $87.5 million. Metromedia did not reveal details of the additional source of the funding.
A total of $180 million has already been committed by affiliates of the company, giving total commitments of $330 million to date. However, to complete the package, Metromedia has been advised to secure further funding for $50 million.
In addition, Metromedia must also line up a further $200 million of vendor financing, to complete a total financing package of around $580 million.
It is understood that negotiations on securing the additional $50 million and the vendor financing are well-advanced, but no further details were available.
Metromedia's refinancing in the US will not affect the internet services exchange it is building in Citywest in Dublin, a spokesman for the company's Irish operations said yesterday.
Financing for the centre, which is costing $75 million to build, had already been secured before the US company began its refinancing.
The centre is almost complete and will be officially opened in September. "It's already gone live and is servicing business," said the spokesman. Microsoft will be one of its key clients. The centre will enable Microsoft to sell its software over the internet using its connectivity.
Metromedia has also built a $40 million fibre ring in Dublin and recently completed a deal with a telecoms company to provide services using its fibre throughout the city.
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