ACS raises $103 million to finance expansion

MARYLAND WATCH

November 15, 1995

American Communications Services Inc., an Annapolis Junction-based telecommunications company, said yesterday that it has raised about $103 million in new investment capital to finance its expansion.

Rick Kozak, named chief executive of the company Nov. 1, said the company raised $98.4 million through a private placement of 10-year, high-yield debt at 13 percent interest. He said another $5 million came from a $5 million sale of preferred stock to ING Equity partners.

Mr. Kozak said the money will be used to finance company plans to build competitive phone networks in 30 mid-size markets in the South and Southwest. He said ACS has seven networks in service and will add Mobile and Montgomery, Ala., within two weeks, with another six networks to go into service in the first quarter of 1996.

The money also will be used to finance ACS' entry into the local exchange market, Mr. Kozak said.

Mr. Kozak said the debt offering was "clearly a major milestone" for ACS that gave the company far more capital than it has ever had before. ACS stock closed up $1 yesterday at $7.25.

Baltimore Sun Articles
|
|
|
Please note the green-lined linked article text has been applied commercially without any involvement from our newsroom editors, reporters or any other editorial staff.