FiberNet Closes Round, Is Hungry for More

Publicly traded FiberNet Telecom Group Inc. recently raised $14.1 through a private placement of secured convertible notes and convertible preferred stock.

Chief Executive Michael Liss said he intends to raise additional capital through debt and private equity financings with strategic investors within the next few weeks.

Signal Capital Partners LP and Trident Telecom Partners LLC each invested in the New York-based company, which develops fiber optic communication infrastructures for commercial office buildings. Gerard Klauer Mattison & Co. acted as placement agent for the deal.

FiberNet has exclusive access to use as many as eight strands of Metromedia Fiber Network Inc.’s fiber network in New York City. The company intends to expand to at least nine additional markets.

Liss, formerly a managing director at Lazard Freres & Co., became FiberNet CEO May 11. Concurrent with the financing, FiberNet will replace its current board of directors with a group brought in by Liss.

“The company had been founded by some individuals who developed the concept, but they are now departing,” Liss said. “The new people will come in and move the concept into execution stage.”

FiberNet differs from other communication infrastructure providers in that once its system is installed, tenants have their choice of telecommunication carriers and Internet service providers.

“Our backbone assures landlords that they have the most advanced fiber distribution available which will satisfy needs for the 21st century,” Liss said.