Investcorp Puts $125M into TelePacific Communications–CORRECTED

CORRECTION: The following press release was originally issued about 11 years ago, but a content aggregator re-issued it with today’s time stamp. Investcorp told peHUB that it invested in TelePacific Communications in 2000 and that TelePacific remains in its portfolio. -Ed.

Investcorp has put $125 million into Los Angeles-based TelePacific Communications, a company that provides integrated communications services. The investment is designed to help TelePacific expand its network infrastructure and service area to new cities, as well as continue its development of web-enabled products, the company said.

PRESS RELEASE
TelePacific Communications, a leading Integrated Communications Provider (ICP) serving business customers in the western United States, announced today that it has received a $125 million equity investment from Investcorp, a global investment group with offices in New York, London and Bahrain.
Los Angeles-based TelePacific Communications is a single source provider
of converged services, including local and long distance voice, data, Internet
access, web hosting and web design. Its customers include small- and
medium-sized businesses and select corporate clients. TelePacific was the
first company in the United States to provide Voice over Digital Subscriber
Line (VoDSL) service to a customer, and is focused on the deployment of
leading-edge technologies providing “best-in-class” telecommunications
services to its customers including packet based switching.
Including the new investment by Investcorp, the company has secured more
than $200 million in financing over the past 12 months. The new investment
will support expansion of TelePacific’s network infrastructure and service
area to several additional major U.S. metropolitan markets over the next
12 months. The investment will also allow TelePacific to continue to expand
its customer-support organization in order to maintain a high level of
service, and to accelerate the development of proprietary web-enabled
solutions for its customers.
“We are very excited about Investcorp becoming a major investor in our
company and expect to benefit from their experience as we pursue our growth
strategy,” said David Glickman, Chairman and CEO of TelePacific. “Investcorp
is a discerning investor and is well known as a value-added partner to
management. We view the firm’s investment in TelePacific as a validation of
our vision of delivering converged communications solutions with unparalleled
customer care.”
Christopher J. Stadler, a member of Investcorp’s Management Committee,
said: “This investment in TelePacific advances Investcorp’s commitment to
investing in exceptional, rapidly growing companies in the global telecom and
technology sectors. TelePacific has built an outstanding infrastructure to
provide customers with access to the best and most innovative telecom and
networking services at extremely attractive prices. We are impressed not only
with the depth and experience of TelePacific’s leadership team, but also the
commitment of the company’s original institutional investors, Rader Reinfrank
& Co. and GE Capital. We look forward to working with these partners to
support TelePacific as it executes its expansion plans.”
Investcorp’s investment in TelePacific is the firm’s fourth significant
telecom investment in the last six months, including Independent Wireless One,
a Sprint PCS affiliate providing digital wireless services in the northeastern
U.S.; Colo.com, a provider of neutral central office colocation facilities to
telecom providers, ISPs and ASPs; and MobileLogic Inc., a provider of wireless
solutions that help corporations improve out-of-office productivity, reduce
costs, increase revenues and leverage their current information technology.

About TelePacific Communications
TelePacific Communications is an Integrated Communications Provider (ICP)
delivering converged telecommunications services, including local and long
distance voice, data and high-speed Internet. TelePacific provides broadband
services to small and medium sized businesses and select corporate clients
within the California and Nevada marketplace. A leader in Voice over DSL
(VoDSL) technology, TelePacific was the first company to deliver VoDSL
services. For more information visit: http://www.telepacific.com.

About Investcorp
Founded in 1982, Investcorp is a global investment group with offices in
New York, London and Bahrain. It focuses on three lines of business:
corporate investment, real estate investment and asset management. The firm
has completed more than 60 corporate investments with an aggregate value in
excess of $16 billion.
In the U.S., Investcorp and its clients currently have investments in 20
companies, including MobileLogic, Independent Wireless One, Colo.com, Stratus
Computer, Werner Holdings, NationsRent, Inc. and The William Carter Company.
U.S. investments that subsequently have been taken public by Investcorp
include Prime Service, Tiffany & Co., Circle K Corporation, Saks Fifth Avenue
and CSK Auto. In Europe, Investcorp and its clients currently have
investments in 5 companies: Avecia (formerly Zeneca Specialties), Leica
Geosystems, Polestar, Welcome Break and Helly Hansen.