Business ISP and web-hosting company Verio Inc said it will raise $400m in a private placement of debt securities. The Englewood, Colorado-based company will issue the 10.625% senior notes, due 2009, to a number of unnamed institutional investors. Verio plans to use the proceeds of the offering for general corporate purposes – including payments to Qwest Communications under a recently-executed 20-year capacity agreement – and to further various strategic initiatives, such as the company’s web-hosting business, through additional data centers and web server co- location space. The company said it may also use some of the cash to continue its expansion into enhanced services, including the application services and e-commerce arenas, and to continue development of its international strategy.
