Fusion Connect Successfully Completes Recapitalization that Replaces Existing Debt and Provides Additional Working Capital to Fuel Business Growth
ATLANTA — Sept. 27, 2023 — Fusion Connect, a leading global managed communications service provider (MCSP) and Microsoft Cloud Solution provider (CSP), has announced its debt refinancing with PNC Business Credit, a division of PNC Bank, N.A. This new financing replaces all the company’s existing debt obligations at par, with more favorable financial terms going forward. It strengthens Fusion Connect's financial position and equips the company with a robust foundation for driving its next phase of growth and technological innovation in delivering Microsoft services and solutions.
Fusion Connect is pioneering the future of communications with its advanced Microsoft Teams Calling Services. By seamlessly integrating Microsoft's AI and automation capabilities, the company is transforming voice into a strategic digital asset for businesses. This not only enhances communication but also provides organizations with a unique competitive advantage, turning voice into a powerful tool for insights and growth in today's digital landscape.
The financing delivers multiple benefits for Fusion Connect:
- Operational Flexibility: The new structure gives Fusion Connect access to flexible financial tools and solutions tailored to its unique business needs, enabling it to make agile decisions in a rapidly evolving market.
- Enhanced Investment Opportunities: With a fortified balance sheet, Fusion Connect can explore new investment opportunities, from acquisitions to R&D, propelling it ahead in the MCSP domain.
- Reduced Interest Burden: By optimizing its debt structure, Fusion Connect will significantly decrease its interest-related expenses, resulting in improved profitability and cash flow.
Working with PNC Bank, a leading financial institution, amplifies Fusion Connect's growth of next generation technology solutions.
Brian McClintock, CFO at Fusion Connect, expressed his enthusiasm for the collaboration, stating, “The refinancing not only enhances our financial structure with a new level of flexibility that's invaluable in our industry, but it also allows for an acceleration of our multiyear growth strategy. With this new structure, we will continue to be below 3x levered, which is market leading in our industry.”
Brian Crotty, CEO at Fusion Connect, commented on his excitement about the refinancing, stating, “Our ability to refinance with more favorable credit terms in these challenging credit markets, underscores our ongoing success in executing on our transformation of Fusion Connect into a leading Global Management Communications Service Provider.”
Fusion Connect's new debt financing underscores the company’s unwavering commitment to its business goals, and heralds in a new chapter of accelerated growth, relentless innovation, and sustained market leadership for the company.
Q Advisors, a global TMT investment banking boutique, acted as financial advisor and placement agent to Fusion Connect, and Akin Gump Strauss Hauer & Feld LLP as legal counsel in connection with this transaction.
