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Birch Aims to Raise $100M in Private Debt Offering

Birch Communications, which operated as Access Integrated Networks until last year, wants to raise $100 million in a private offering of its senior secured notes.

The Atlanta-based CLEC intends to use the proceeds to pay outstanding debt, buy outstanding warrants of its common stock and to fund “general corporate purposes” that, according to a press release, include M&A.

The company could not comment further on the plan – such as to talk about why now makes a good time to raise debt – as it remains in a quiet period until some time in January. However, communications firms including Clearwire Corp. and Canada’s TELUS have had recent success with similar, albeit larger, offerings.

Access Integrated Networks finalized its purchase of Birch in early 2008. The value of the deal was not disclosed as both companies were privately held. The combined CLEC has worked to move away from commercial agreements with the ILECs and provide services over a softswitch-powered private IP network. A prominent Georgia business magazine now says Birch is one of the state’s fastest-growing companies.


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