Eagle finalizes funding arrangements

SSN Staff  - 
Wednesday, January 1, 2003

LEAGUE CITY, Texas -A provider of bundled digital services and security and home automation systems has secured a three-phase funding agreement to provide approximately $50 million for its digital services plan.

Eagle Broadband, based here, expects to receive the funding over the next two to four years, with the initial funding from phase two to be received by the end of the year, company officials said. The funding is from a combination of senior secured debt financing, project based financing, subordinated debt financing and a limited amount of equity-based financing.

“When complete, this financial package, in conjunction with a number of additional funding resources, our existing cash reserves and our growing recurring revenue stream, will be used to support the deployment of our enhanced Bundled Digital Services to cities and municipalities nationwide, expand the (fiber to the home) infrastructure in our gated communities and provide capital to underwrite the initial production of our new commercial/military product line,” said Dr. H. Dean Cubley, chairman and chief executive officer of Eagle Broadband.

Through its ClearWorks subsidiary, Eagle markets home automation, communications and security systems to the building community.