Excite@Home Gets $100M in Financing
Redwood City, Calif.— Excite-@Home Corp. said it has completed the private sale of $100 million in five-year convertible secured notes through Promethean Capital Group LLC.
In a press release, the data-over-cable provider said the notes can be converted to shares of its Class A common stock at a 10-percent premium to the company's average trading price on June 8, or $4.38 per share. Excite@Home stock closed at $3.55 on June 12.
Excite@Home has scrambled to raise money to fund its operations, telling investors in April that it needed to raise about $75 million to $80 million for the rest of the year. Its efforts to conserve cash recently included plans to shut down unprofitable portal businesses in France, Germany and Spain because of weak Internet advertising.
The company also had said it was negotiating a sale-leaseback of its broadband backbone network with AT&T Corp. to raise $75 million to $85 million. Those talks are continuing.
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