US LEC, a super-regional telecommunications carrier, recently made approximately $6 million in payments toward its senior debt.
Earlier this year, the Charlotte-based company reported net revenues of more than $231 million for the nine months ending Sept. 30 and its third consecutive quarter of positive cash growth.
Cash for the debt repayments was generated by the proceeds from a recent private placement of common stock, as well as from the sale of amounts owed to US LEC from the MCI bankruptcy estate, the company says.
In November of this year, US LEC raised $10 million of equity capital in a private placement of two million shares of Class A common stock.
“With these payments, we have reduced US LEC’s senior bank debt to only $121 million from its peak of $150 million,” said Aaron Cowell, president and CEO for US LEC. “We believe our balance sheet remains among the strongest in our sector.”
US LEC: www.uslec.com