Convergent Communications, Inc. -(CONV) Message Board

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Technology Stocks : Convergent Communications, Inc. -(CONV)

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To: Clyde Chan who wrote (103)	3/28/2000 3:37:00 AM
From: sunny	of 105

Good news for the company. Maybe this will boost the stock to appropriate levels in regard to its peers (which should be in the 30s to 50s at least). Convergent to get $175 mln investment ENGLEWOOD, Colo, March 27 (Reuters) - Convergent Communications Inc. (NasdaqNM:CONV - news) said Monday that the investment firm Texas Pacific Group has committed to lead a $175 million investment in the company. Texas Pacific will invest $150 million, with affiliates of Sandler Capital Management investing the remainder. The company also stated it has begun a search for a new chief executive, who will be replacing current founding chairman and chief executive officer John Evans. The company was not available to comment. Under the terms of the commitment, the investors will subscribe to $175 million of newly-issued 8 percent convertible preferred stock convertible into common stock at a conversion price of $13 per share, an 18 percent premium to the 30-day average closing price through March 27, 2000, of Convergent Communications' common stock. The preferred stock will vote together with the company's common stock on an as-if-converted basis. The investors will also receive 700,000 warrants exercisable at $20 per share and 1.17 million warrants exercisable at $25 per share. Upon closing, Texas Pacific will designate two members to Convergent Communications' Board of Directors. Convergent also announced full year 1999 revenues were $160 million, a 160 percent increase over the year ago and fourth quarter revenues were $48 million, up 93 percent from the same period last year.

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