(COMTEX) B: LecStar Increases Credit Facility
B: LecStar Increases Credit Facility
ATLANTA, Mar 11, 2002 /PRNewswire-FirstCall via COMTEX/ -- LecStar Corporation
(OTC Bulletin Board: LCST), a rapidly growing Atlanta-based regional provider of
integrated communications services to businesses and consumers, today announced
it has increased its credit facility with Sherman LLC. Under terms of the
agreement, the credit facility has been increased from $3.5 million to $5
million and the maturity date has been extended from June 30, 2002, to June 30,
2003.
"Given that so many telecommunications companies today are finding it difficult
to raise money or expand their credit facilities, we're extremely pleased with
the expansion and extension of existing credit agreement," said Dale Smith,
president of LecStar. "The additional funding puts us on much more firm ground
to build our company going forward. We continue to be very underleveraged
compared to most other telecommunications companies of our size and scope. While
we've made terrific progress in growing our customer base and streamlining our
operations to achieve positive EBITDA during the next three quarters, we are now
in a better position to accelerate our growth plans and pursue several potential
acquisition targets. We're excited about the positive benefits of this agreement
and the opportunities that lie before us in 2002."
LecStar Corporation is a facilities-based integrated communications carrier
(ICC), certified by the Federal Communications Commission and by eight states --
Alabama, Florida, Georgia, Kentucky, Mississippi, North Carolina, South Carolina
and Tennessee -- as a competitive local exchange carrier (CLEC) to provide
regulated local, long distance and international telecommunications services. In
close alliance with its agents and local electric utility company partners,
LecStar offers a full array of fixed wire-line voice, data, Internet and
operator services to business and residential customers throughout BellSouth's
Southeastern operating territory. For more information regarding the LecStar
Corporation, its products or services, please contact LecStar at 404-659-9500 or
visit www.lecstar.com.
FORWARD-LOOKING STATEMENTS: This document includes certain "forward- looking
statements" within the meaning of the Private Securities Litigation Reform Act
of 1995. These statements are based on management's current expectations and are
subject to uncertainty and changes in circumstances. Statements in this press
release, which are not historical, may be deemed forward-looking statements.
Although LecStar believes the expectations reflected in any forward-looking
statements are based on reasonable assumptions, it can give no assurance that
its expectations will be attained. Factors that could cause actual results to
differ materially from LecStar's expectations include completion of pending
investments, continued availability to originate new investments, the
availability and cost of capital for future investments, competition within the
industry, economic conditions and other risks detailed from time to time in
LecStar's filing with the Securities and Exchange Commission.
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SOURCE LecStar Corporation
CONTACT: Chad Smith of LecStar Corporation, +1-404-659-9500, or
chad@lecstar.com
URL: lecstar.com
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Copyright (C) 2002 PR Newswire. All rights reserved.
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KEYWORD: Georgia
INDUSTRY KEYWORD: TLS
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