CAIS Secures Bridge Loan

The $19.5 million bridge loan is intended to float the company's operations until it can arrange permanent equity and debt financing.

by Roy Mark of www.internetnews.com [July 10, 2001]

Hotel and business broadband provider CAIS Internet, Inc. (NASDAQ:CAIS), has secured a bridge loan for up to $19.5 million to fund the company's operations until it secures permanent equity and debt financing, which it plans to obtain in the fourth quarter.

The funding was led by CII Ventures II LLC, an affiliate of Kohlberg Kravis Roberts & Co. (KKR). Other lenders include CAIS Internet founder Ulysses G. Auger, II and R. Theodore Ammon, a major shareholder in the Washington, D.C.-based company.

"The securing of this bridge loan confirms the support its primary investors, including KKR, have for the company's new management team and its continuing execution of the company's new ISP-centric business plan," said Michael Lee, president and chief executive officer of CAIS. "To date we have dramatically improved our balance sheet, redirected the company to an ISP business model, significantly reduced our burn rate and rapidly expanded our customer base, all crucial elements in ensuring the long term success of the company."

CAIS is a nationwide supplier of broadband Internet access solutions and provides high speed Internet services to businesses in 29 points of presence across the country utilizing a tier-one, nationwide Internet network and several proprietary technologies.

Additionally, the Company provides bundled data services including Web hosting, co-location services and other value added managed data services. The company also provides service to certain hotel properties utilizing installed high speed Internet service and business centers.

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