iBasis Free of Bond Debt as Remaining Notes Convert to Equity
7:00a EDT September 6, 2005 (Business Wire) iBasis, Inc. (OTCBB:IBAS), a leader in international long distance, VoIP, and prepaid calling cards, announced today that it has successfully eliminated all $32.6 million of its 6 3/4% Convertible Subordinated Notes due June 2009.
The Company previously announced that it would redeem these Notes at face value plus accrued interest. Prior to today's redemption date, all holders exercised their right to convert their Notes to Common Stock at $1.85 per share, which resulted in the issuance of 17.6 million shares. iBasis now has 101 million shares outstanding. Due to these conversions, the Company was not required to fund any redemptions and has no further bond debt. Imperial Capital acted as advisor to the company on the transaction.
"This is an amazing accomplishment, which has provided immediate benefits for iBasis investors in the form of dramatically increased stockholders equity and reduction of our interest expense," said Ofer Gneezy, president and CEO of iBasis. "We started our campaign to eliminate $150 million in bond debt more than three years ago, and through advantageous re-purchases, exchanges, and conversions, we have achieved one of our major financial goals."
As previously announced, $19.9 million of the Company's 8% Secured Convertible Notes due 2007 converted to equity in July. 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. |
