Pocket Communications Northeast, a San Antonio, Texas-based provider of flat-rate, unlimited use wireless voice and data services, has secured a $25 million senior secured credit facility. The Bank Street Group served as Pocket’s financial advisor and placement agent. Last November, Pocket raised $100 million in Series A funding from Battery Ventures, Charles River Ventures and Pocket CEO Paul Posner.
The Bank Street Group LLC today issued a press release highlighting the placement of a $25 million senior secured Credit Facility for the recently formed Pocket Communications Northeast. Pocket Northeast is majority-owned by Battery Ventures alongside Charles River Ventures and Paul Posner, Pocket’s founder, President and Chief Executive Officer. Pocket Northeast provides flat rate, unlimited use wireless services under the Pocket brand name in Hartford and New Haven, CT, Pittsfield and Springfield, MA and Poughkeepsie, NY, which have a combined population of approximately 3.5 million.
The $25 million debt financing, together with the $100 million of equity financing closed in November 2008, will be used to fund Pocket Northeast’s network construction and working capital as it builds out and launches service in its markets. Bank Street served as Pocket’s exclusive financial advisor and placement agent for both the debt and equity financing for Pocket Northeast.
“With the $25 million debt financing and $100 million equity financing completed for Pocket Northeast, the Company is well capitalized to implement its affordable flat rate, unlimited wireless business strategy in its Northeast markets. By coordinating both the debt and equity placement processes, Bank Street facilitated a highly efficient capital raise at an attractive overall cost of capital,” commented Paul Posner, Pocket Northeast’s President and CEO.
“Leveraging the affordable flat rate, unlimited use wireless business model successfully executed by Paul Posner and his team in his wholly-owned Texas operation, Pocket Communications, Pocket Northeast has attracted debt and equity capital from top tier financing sources in the communications industry,” said Richard S. Lukaj, co-founder and Senior Managing Director of Bank Street. “The financing that Bank Street has successfully arranged for both Pocket Communications and Pocket Northeast over the past 12 months, comprising $170 million of total capital, highlights our firm’s ability to deliver comprehensive investment banking services to our middle market clients in emerging growth sectors of the economy,” concluded Lukaj.
Pocket Communications Northeast offers an affordable flat rate service which allows customers to place and receive unlimited wireless calls within a local service area for a flat monthly fee without the burden of the one or two year contract typically required by traditional wireless companies. Pocket Northeast’s affiliate, Pocket Communications, is Texas’ fastest-growing flat-rate wireless company, with more than a quarter of a million subscribers in its San Antonio, Laredo, and Brownsville-McAllen markets in South Texas which have a combined population of approximately 3.6 million. The privately held company, founded in 2005, is headquartered in San Antonio, Texas. For more information, visit www.pocket.com.
About Battery Ventures
Since 1983, Battery has been investing in technology and innovation worldwide. The firm partners with entrepreneurs and management teams across technology sectors, geographies and stages of a company’s life, from start-up and expansion financing, to growth equity and buyouts. Battery has supported many breakthrough companies around the world. From offices in Boston, Silicon Valley and Israel, Battery currently manages nearly $3 billion in committed capital. For more information, visit www.battery.com
About Charles River Ventures
Founded in 1970, Charles River Ventures (CRV) is one of the nation’s oldest and most successful early-stage venture capital firms with approximately $2.1 billion presently under management. CRV is dedicated to helping exceptional entrepreneurs turn their ideas into the next category leaders in high growth technology and media sectors. Over the past 10 years, CRV funds have been ranked among the industry’s top performers. CRV has offices in Boston, MA and Menlo Park, CA. For more information, visit www.crv.com.
About Bank Street
Bank Street is a private investment banking firm providing a comprehensive array of financial advisory services. Our senior professionals have originated, structured and executed more than $250 billion of financial and strategic transactions and are dedicated to bringing the breadth and depth of this experience to bear to the benefit of our clients. With a portfolio of capabilities that includes Financial Advisory, Mergers & Acquisitions, Private Placements of Debt & Equity, Restructuring & Turnaround Advisory, Valuation and Fairness Opinions, Bank Street offers a full complement of services for our corporate and institutional clients. For more information, visit www.bankstreetgroup.com.