The company's senior lenders are BNP Paribas, Deutsche Bank AG and Coast Business Credit. The credit line expansion, says USOL Holdings, will be used for capital expenditures. Based on current subscriber counts, the pact adds nearly $2.8 million, resulting in an available borrowing base of about $14.5 million, according to company statements.

USOL Holdings is the parent company of US OnLine, a provider of single-package telephone, cable and high-speed Internet to multifamily units. "We are intensely focused on expanding our subscriber base, as well as enhancing the size and quality of the infrastructure that supports our customers. Obviously, our access to capital and our ability to direct that capital is of great importance," says Rob Solomon, USOL Holdings' CEO. "With our access to the necessary working capital, we are confident we can meet and exceed the long-term performance milestones established in our amended credit agreement."

The pact has stalled completing financial performance ratios until Dec. 31, 2002. And, it specifies the number of cable passings, reported revenue and EBITDA that must be achieved in the upcoming fiscal quarters. To date, US OnLine has 50,467 passings operational in Austin, Dallas-Ft. Worth, Denver, Houston, San Antonio, Washington, DC and Portland, OR. Also amended has been the number of financial and operational covenants that USOL Holdings can allocate, on a per-subscriber basis, toward capital expenditures.