May 9, 2005 - (HOSTSEARCH.COM) - ISP, IKANO Communications, announced that it has secured a $16.5 million credit facility from Hercules Technology Growth Capital Inc.
IKANO has entered into the agreement with Hercules to establish a senior secured loan facility in the total amount of $16.5 million. On April 19,
2005, the initial closing, IKANO immediately drew down $5.0 million of the line. IKANO will utilize the net proceeds to fund acquisitions, including the recent purchase of the subscriber base of Amerion, a Washington state-based Internet Service Provider. IKANO will seek additional opportunities for the remaining amounts under the line.
"We are thrilled to have Hercules Technology on board as a capital provider," said Henry Smith, IKANO president and CEO. "This funding will enable us to complete a number of key acquisitions including Internet Service Providers and related companies."
During the past year, IKANO has purchased the subscribers and some related assets of approximately 15 Internet Service Providers.
IKANO partners with Internet Service Providers to help reduce operating costs, increase revenue and expand geographic reach/product offering. IKANO's private-label platform supports turnkey dial-up, DSL, VoIP, wireless access solutions, email/webmail, IM, hosting, billing, branded customer service/technical support, and automated accounting.
IKANO is an Inc. 500 company, with more than 500 business clients and 300 employees. Headquartered in Salt Lake City, IKANO has additional offices in Logan, Ohio; Toronto, ON; and Pasco, Washington.
