GlobalNet Refinances $2.8 Million Capital Lease, Ends Dispute With Former Lender
GlobalNet Refinances $2.8 Million Capital Lease, Ends Dispute With Former Lender
LOMBARD, Ill., May 3 /PRNewswire/ -- GlobalNet, Inc. (NASDAQ:GBNE), a leading provider of international voice, data and Internet services over a private, managed Internet Protocol (IP) network, today announced that it is in the process of completing refinancing a $2.8 million capital lease that it had entered into for its original network equipment. GlobalNet's monthly lease payments will decrease by approximately $80,000 as a result of a reduction of the interest cost to 12 percent from 22 percent and extension of the term to 36 months from 18 months. The refinancing agreement does not involve issuing warrants or other equity instruments to the new lender.
"Refinancing this lease not only lowers our interest cost but also resolves a dispute we had with the former lender," said GlobalNet Chairman and Chief Executive Officer Robert J. Donahue. "The fact that we have been able to refinance this lease at a much lower interest rate proves once again the validity of our business plan and the strength of our management team."
GlobalNet recently announced that it had secured an additional $6 million in financing with an existing shareholder and that it expects to be EBITDA positive in the second quarter of this year.
About GlobalNet
GlobalNet, Inc. provides international voice, data and Internet services over a private IP network to international carriers and other communication service providers in the United States and Latin America. GlobalNet's state-of-the-art IP network, utilizing the convergence of voice and data networking, offers customers economical pricing, global reach and an intelligent platform that guarantees fast delivery of value-added services and applications. The company, through its facilities in the U.S. and Latin America and arrangements with affiliates worldwide, can carry traffic to more than 240 countries.
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