IBAS News iBasis Eliminates All of its Secured Bond Debt; $19.9 Million of Secured Notes Convert to Equity: "IBAS News iBasis Eliminates All of its Secured Bond Debt; $19.9 Million of Secured Notes Convert to Equity
From: NewsBot
Date: July 18, 2005 06:35:45 AM
iBasis Eliminates All of its Secured Bond Debt; $19.9 Million of Secured Notes Convert to Equity
iBasis, Inc. (OTCBB: IBAS), a leader in international long distance, VoIP, and prepaid calling cards, today announced that $19.9 million of the Company's debt has converted to equity through negotiated agreements with noteholders. Overall, the notes have converted into approximately 10.8 million shares of iBasis common stock at the original conversion price of $1.85 per share.
The negotiated conversions consist of $19.9 million of the Company's 8% Secured Convertible Notes due 2007. The Company paid premiums to encourage early conversion in the amount of $1.2 million in cash, which will be charged to results of operations in Q3 2005. The overall reduction in the company's debt will result in total annual savings on future interest payments of approximately $1.6 million, and adds approximately $19.9 million in stockholder equity, excluding premiums and transaction costs.
'After years of carrying a high level of debt that weighed heavily on our business, we have achieved a major milestone in eliminating all of our secured bond debt,' said Ofer Gneezy, president and CEO of iBasis. 'In addition, our remaining long term debt, now $33 million, is convertible at $1.85 and is not due until 2009.'
About iBasis
Founded in 1996, iBasis (OTCBB: IBAS) is a leading wholesale carrie"
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