Transatlantic fibre player Hibernia Networks completes US$52.5m refinancing

17 Jan 2013

Transatlantic network services player Hibernia Networks has just completed a US$52.5m debt refinancing, with new lenders Fortress Investment group LLC and Bridges Bank taking part.

The proceeds of the refinancing were used to pay off existing debts and provide liquidity to continue to grow the business.

Fortress Investment Group LLC is an investment firm with more than US$50bn in assets under management.

Bridge Bank is a business bank focused on small, middle and emerging technology businesses.

Hibernia Networks’ global network now reaches more than 120 points of presence in Ireland, the UK, Europe, North America and the Pacific Rim.

Hibernia was founded in 2003 when its owner Ken Peterson’s Columbia Ventures Corporation acquired two transatlantic submarine systems and cable landing stations that had been built at an initial cost of US$1bn before the bubble burst.

The company began carrying data traffic in 2005 across the Atlantic between London and New York and has deployed various network expansions over the years, including Project Kelvin, a high-capacity route into Ireland.

“With this transaction, Hibernia has reduced its cost of capital considerably, a reflection of the successful execution of our business plan,” explained Lloyd Jarkow, CFO of Hibernia.

“Hibernia is focused on continued growth and we are excited about the strategic value of our new lender relationships,” Jarkow said.

John Kennedy is a journalist who served as editor of Silicon Republic for 17 years