WASHINGTON—Online mobile phone retailer InPhonic Inc. announced a $100 million debt financing agreement with Goldman Sachs and Citigroup.
InPhonic, which operates the Wirefly.com storefront, said it will use the capital to repay debt under its existing operating line of credit, fund share repurchases and fuel working capital needs. Roughly $75 million of the financing has already been drawn down; the remaining $25 million may be tapped within 90 days.
“We believe this investment from these two prestigious institutions validates InPhonic’s transition from a one-time revenue business to one which includes residual-based compensation from our wireless partners,” InPhonic Chief Executive Officer David Steinberg said. “We look forward to working with them and believe this financing will help to grow our core business while providing for expanding growth opportunities and the capability to repurchase shares of our common stock.”
Shares of InPhonic were essentially unchanged on the news.
