Companies sign preferred stock deal
Monday, April 5, 1999 | 11:44 a.m.
Three companies have signed on to a $47.5 million investment in a Las Vegas-based telephone company.
MGC Communications Inc. announced today it has issued $37.5 million in Series B Convertible Preferred Stock at $9 a share to an affiliate of Providence Equity Partners Inc.
Two existing shareholders, JK&B Capital and Wind Point Partners, also acquired a total of $10 million in preferred stock.
MGC plans to use the proceeds from the issuance for continued network development, the introduction of high-speed data and voice line products and general corporate purposes.
Providence was a founding investor in Brooks Fiber, which was sold last year to MCI WorldCom for $3 billion.
The company also is a founding investor in the leading Canadian competitive local exchange carrier, MetroNet Communications Corp., which last month announced a $7 billion merger with AT&T Canada. Providence also has invested in Verio Inc., a business Internet service provider.
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