CMGI Retires Series C Pfd Stk
November 20, 2001
Dow Jones Newswires
ANDOVER, Mass. -- CMGI Inc. (CMGI) retired its series C convertible preferred stock under the terms of an agreement with the holders of this stock.
In a press release Tuesday, the Internet operating and development company said the series C stock retirement is the second of two major financial restructuring initiatives focused on improving its capital structure.
Earlier this month, CMGI and two of its subsidiaries, NaviSite Inc. (NAVI) and AltaVista Co., completed an agreement with Compaq Computer Corp. (CPQ) and Compaq Financial Services to retire, restructure and realign key financial obligations.
"We've effectively closed the second chapter of our financial restructuring initiatives and significantly improved our capital structure in line with the company's long-term goals," CMGI said.
In June 1999, CMGI completed a $375 million private placement of newly issued series C convertible preferred stock, the June 2002 maturity value of which is estimated to be about $398 million.
Under the terms of the agreement, the series C stockholders retired the obligation in full in exchange for about $100.3 million in cash; about 448.3 million ordinary shares of Pacific Century Cyberworks Ltd. (PCW) owned by CMGI; and about 34.7 million CMGI common stock.
At 4 p.m. EST Tuesday, CMGI shares traded at $2.62, down 43 cents or 14.1%, on Nasdaq volume of 9.74 million shares. Average daily volume is 3.57 million shares. The shares hit a 52-week high of $14.13 on Nov. 27, 2000, and a low of 60 cents On Oct. 8, 2001.
Company Web site cmgi.com
-Ralph Tasgal; Dow Jones Newswires; 201-938-5400
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