SECURITIES AND EXCHANGE COMMISSION
                               Washington, D.C. 20549

                                      FORM 8-K
                                          
                                   CURRENT REPORT


     PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934



Date of Report (Date of earliest event reported):  July 8, 1998



                            MICROTEL INTERNATIONAL, INC.
                            ----------------------------
               (Exact Name of Registrant as Specified in Its Charter)



           Delaware                       1-10346              77-0226211     
 -------------------------------------------------------------------------------
  (State or other jurisdiction of      (Commission File     (IRS Employer
   incorporation or organization)          Number)           Identification No.)




              4290 East Brickell Street, Ontario, California    91761
              -------------------------------------------------------
              (Address of Principal Executive Offices)     (Zip Code)


Registrant's telephone number, including area code:  (909) 456-4321



            -------------------------------------------------------------
            (Former name or former address, if changed since last report)



ITEM 5.  OTHER EVENTS.

REPLACEMENT CREDIT FACILITY
- ---------------------------

     On July 8, 1998, the Company finalized a $10.5 million credit facility 
with a commercial finance company which provides a term loan of approximately 
$1.5 million and a revolving line of credit of up to $8 million based upon 
available assets, of which the Company has utilized approximately $4 million 
and a capital equipment acquisition credit line of up to $1 million.  This 
credit facility replaced the existing credit facilities of the Company's 
domestic operating companies and provides expanded borrowing capability based 
upon available assets.

SALE OF SERIES A CONVERTIBLE PREFERRED STOCK
- --------------------------------------------

     On July 8, 1998, the Company completed the sale to three institutional 
investors of 200 shares of Series A convertible preferred stock (the 
"Preferred Shares") at $10,000 per share and one million warrants to purchase 
the Company's common stock exercisable at $1.25 per share, expiring May 22, 
2001.  The Company received net proceeds of approximately $1,843,000 after 
deduction of commissions and transaction-related expenses and utilized such 
proceeds for working capital. The Preferred Shares are convertible into the 
common stock of the Company at the option of the holder thereof at any time 
after the ninetieth (90th) day of issuance thereof at the conversion price 
per share of Preferred Share equal to $10,000 divided by the lesser of (x) 
$1.25 and (y) One Hundred Percent (100%) of the arithmetic average of the 
three lowest closing bid prices over the forty (40) trading days prior to the 
exercise date of any such conversion.  No more than 20% of the aggregate 
number of Preferred Shares originally purchased and owned by any single may 
be converted in any thirty (30) day period after the ninetieth (90th) day of 
issuance.  In the event of any liquidation, dissolution or winding up of the 
Company, the holders of shares of Preferred Shares are entitled to receive, 
prior and in preference to any distribution of any of the assets of this 
corporation to the holders of the company's common stock by reason of their 
ownership, an amount per share equal to $10,000 for each outstanding 
Preferred Share.  Any unconverted Preferred Shares may be redeemed at the 
option of the Company for cash at a per share price equal to $11,500 per 
Preferred Share and any Preferred Shares which remain outstanding as of May 
22, 2003 are subject to mandatory redemption by the Company at the same 
per-share redemption price. 



                                     SIGNATURE

     Pursuant to the requirements of the Securities Exchange Act of 1934, the 
Registrant has caused this report to be signed on its behalf by the 
undersigned, thereunto duly authorized.

                                     MICROTEL INTERNATIONAL, INC.


                                     By: /s/ James P. Butler  
                                        ----------------------
                                        James P. Butler
                                        Chief Financial Officer


Date: July 30, 1998