Tuesday, May 23, 2006
NuVox Communications announced on May 15, 2006 that it has closed a $95 million senior secured credit facility, consisting of an $85 million 6-year term loan and a $10 million 5-year revolving credit facility. The proceeds from the new facility will be used to refinance certain existing indebtedness and for general corporate purposes. (To stay afloat, in other words). Nuvox uses Sylantro System's application feature server, Sonus’ GSX9000 and Insignus Softswitch, and Acme Packet’s Net-Net product. VoxIP's core private IP network is built on Cisco technologies, and the voicemail platform is constructed on IP Unity technologies. In October, 2005, Nuvox hit 1000 VoIP customers in its 30 markets across the Southeast and Midwest. Nuvox is privately held, so who knows how bad the financial situation is. The 1000 VoIP customers probably represent $6M in annual revenue at $500 per month each, so in 5 years they can't even cover the loan principle without some serious sales growth.