|[November 14, 2012]
Broadview Networks Completes Financial Restructuring
NEW YORK --(Business Wire)--
Broadview Networks (News - Alert) announced today the completion of its financial
restructuring. With its new capital structure in place and the brief
chapter 11 process complete, Broadview is a stronger, delevered company
with the flexibility, balance sheet and liquidity to expand its cloud
services market position.
Broadview's leverage is now below the average of its peers. As a result
of the restructuring, Broadview has reduced its outstanding senior notes
by 50%, reduced its annual interest expense by approximately $18 million
and has access to free cash flow that will partially be used for general
working capital and growth opportunities.
The prepackaged restructuring was completed within the previously
announced timeline. Broadview Networks filed in late August, having
already solicited votes on and obtained overwhelming support of its
prepackaged Plan of Reorganization. Now that the Plan has been
consummated and all regulatory approvals have been obtained, Broadview
has a new debt structure including $150 million of senior secured notes
with a five year maturity and a $25 million revolving credit facility.
"With our restructuring completed, we are a stronger company," said
Michael K. Robinson, President and Chief Executive Officer of Broadview
Networks. "Our restructuring provides us greater financial flexibility
and stronger growth opporunities. The prompt approval of the Plan
validates all of the hard work and cooperation of our employees,
stakeholders, customers and trading partners over the past several
months. We are extremely appreciative of the support from all of these
parties. Having recently obtained regulatory approvals, we are excited
to begin the next phase and are committed to providing our customers
with the best possible products and services. Part of the reorganization
process included forming a new Board of Directors. We appreciate the
service of our prior board members and look forward to working closely
with our new directors to continue building Broadview into a leading
provider of cloud based products and services."
During both the restructuring and superstorm Sandy, Broadview has
continued normal operations, serving its customers with the same high
quality service they have come to expect. Its flagship hosted service
remained online throughout superstorm Sandy, providing customers with
critical communications services and the ability to avoid or minimize
impacts of the storm on their business. Broadview did not sell any
businesses or close any offices during the restructuring, nor did it
impair its services levels. Suppliers and vendors were paid in full and
employees received their usual pay and benefits.
The Company's restructuring counsel is Willkie Farr & Gallagher LLP and
its financial advisor is Evercore Group, L.L.C.
About Broadview Networks
Broadview Networks is a network-based business communications provider
serving customers nationwide with local and long-distance voice and data
communications, premises-based and patented hosted VoIP systems, data
services and a full suite of managed and professional services. They
also provide an innovative portfolio of bundled, hosted IP phone and
cloud computing services designed to meet the unique application
requirements of diverse workforce groups. Its customers benefit from
award-winning customer service, including a Web-based account management
tool and a primary point-of-contact for real-time, personal customer
care. For more information, visit www.broadviewnet.com.
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