Debt and equity financing to add to Gabriel services

St. Louis-based Gabriel Communications Inc., a provider of communications and application services that has offices in Springfield at 1523 E. Lark, recently completed more than $400 million of debt and equity financing, according to Gabriel President Jerry Howe.

"We issued additional stock to our existing shareholders, and to that end, we raised $200 million in additional equity, and we expanded our debt that we had outstanding to $200 million as well," Howe said.

Howe said the additional funds will allow Gabriel to solidify its operating capability. The fund will also provide capital for the company to continue to build out its networks and expand existing services.

He added that as a result of the debt and equity financing, the company will be able to offer more complete services to customers in this area as well as other markets.

"For instance, many businesses in Springfield have operations in Wichita, Tulsa or Kansas City. We have networks there, and this money will also ensure that we finish out the construction of those networks so that we can provide services to those customers, to their Wichita and Springfield sites, or wherever they might also have operations," he said.

Howe said Gabriel, which began offering services in Springfield in September 1999, now offers high-speed Internet access, local voice services and a variety of long-distance services, and he said more services will be added.

He said the first new service Gabriel customers in the Springfield area will be able to use is Digital Subscriber Lines, or DSL, which Gabriel plans to roll out in Springfield later this month.

Howe said DSL is a high-speed Internet access alternative that's generally less expensive than other more traditional kinds of technology.

"We have found in the marketplace that more than anything, people want faster access to the Internet, and DSL is enabling technology that allows you to do that," he said.

Securing the debt and equity financing is not the only thing Gabriel is doing to enhance its services to customers in Springfield and other regions.

He said the company has also recently entered a merger, separate from the debt and equity financing, with South Carolina-based TriVergent Communications, which offers automated Web design, Web hosting, high-speed data and voice services.

Howe said customers will be able to use some of TriVergent's Web design tools in about 90 days, which is when Gabriel officials predict the merger will close.

He said the merger will have a more significant impact on the Springfield area in the long run, because as the two companies integrate, additional services will be available here at more affordable prices.