Fusion Connect is working with Greenhill as financial advisor to raise new capital, according to sources. The company is represented by Akin Gump as counsel, the sources said.
The cloud computing and internet services provider has not made a decision on how to raise the capital and Greenhill continues to collect proposals from existing and new investors, the sources said.
The company is expected to miss budget for the year, sources said. However, the company expects the business will rebound in the next one to two years, they added. Fusion Connect projected $39 million of EBITDA on $316 million of revenue for 2021 compared with $61 million of EBITDA on $380 million of revenue a year earlier, the sources said.
Fusion Connect
sold its Canada business in January. The company has been trying to transition from its legacy phone business to newer lines of business with better margins.
Fusion
exited bankruptcy in January 2020, with prepetition first lien lenders becoming the majority owners of the company.
The company’s $115 million L+950 bps exit term loan was indicated today at 99.8/100.79, while the $225 million second lien take-back term loan was indicated at 30/40, according to Solve Advisors.
Fusion Connect, Greenhill and Akin Gump did not respond to requests for comment.
--Harvard Zhang, Adelene Lee, Ellen Schneider