Optical communications carrier Metromedia Fiber Networks announced Thursday that it secured $235 million worth of conditional vendor financing, which will allow the company to purchase needed equipment and services from suppliers in its bid to keep operating. The carrier said the financing depends on several conditions including approval from its bondholders, a secured $150 credit line from Citicorp, and commitments from other sources totaling $230 million, $180 million of which the carrier has already received from its affiliates. The vendor financing agreement expires Sept. 4.
Earlier this month, Metromedia received a letter of intent from a group of investors led by Citicorp to provide $150 million in financing, which brought its total financing to $330 million. The vendor deal is a much-needed agreement that will help Metromedia's balance sheet because the loans of $180 million from its affiliates and the $150 million from Citicorp depended in part on the company securing vendor financing in the future. In the second quarter, the carrier posted a net loss of $205.2 million, or 34 cents per share, from a net loss of $92.0 million, or 17 cents per share, for the same quarter last year. Revenues rose to $91.7 million from $43.3 million.