The Globe and Mail reports in its Saturday edition that rural Internet provider Xplornet Communications is expanding its reach with new satellite services and cleaning up its balance sheet. The Globe's Christine Dobby and Andrew Willis write that the moves could set the New Brunswick company up for either an initial public offering or sale to a private equity investor. Xplornet serves more than 300,000 customers, making it Canada's eighth-largest Internet provider. To pay for expansion and retire existing debt that pays 13-per-cent interest and matures next year, Xplornet is in talks with lenders on a $335-million (U.S.) package of loans that sources say are expected to carry interest of 7.5 per cent. Moody's put out its first report on Xplornet on Tuesday, awarding a non-investment-grade B3 rating. Investment bankers say that once the debt financing is in place, the company plans to run a dual-track process to raise additional capital by either going public or selling all or part of the company to a private equity investor. In July, Bloomberg reported that at least three U.S. private-equity firms are circling the company. An IPO or private equity investment is expected to value Xplornet at more than $1-billion.