Birch Communications, a leading IP-based telecommunications and managed services provider to small- and medium-sized businesses, is pleased to announce that it has secured a $77.5 million finance package consisting of a senior term loan, a senior revolving credit facility, a tranche of subordinated debt, and a provision for up to a $7.5 million leasing facility. Birch will use this new financing to repay outstanding indebtedness, fund future acquisitions, fund network build-out and for general corporate purposes.

"We're very proud of Birch and this financing is a milestone for our company. It strengthens our capital structure and lowers our cost of debt which increases our free cash flow and provides us with extra flexibility to pursue our value-creating growth strategy," noted Edward James, Birch's chief financial officer. "Furthermore, securing this financing underscores the confidence that our financial partners have in Birch."

"This funding enables Birch to continue to grow its business and is also confirmation of our overall business strategy," said Vincent M. Oddo, Birch's president and chief executive officer. "I am pleased that this funding will allow us to continue to seek accretive acquisitions, expand our proprietary IP-network and also allow us to expand the scope of our current products and services to better serve our large existing base of customers."