09:21 America Online Inc. Announces the Sale of $350 Million Subordinated
Convertible Debentures
DULLES, Va.--(BUSINESS WIRE)--Nov. 12, 1997--America Online Inc. (NYSE:AOL),
announced Wednesday the sale of a new issue of $350 million aggregate
principal amount of 4.0% Convertible Subordinated Notes due Nov. 15, 2002 (the
"Notes").
The Notes will be convertible into the company's common stock, at the option
of the holder, at a conversion price of $104.38 per share, representing a
conversion premium of 40% over yesterday's closing price. The Notes have been
sold inside the United States and outside the United States in a private
placement under Rule 144A and Regulation S, respectively.
Lennert J. Leader, senior vice president and chief financial officer of
America Online said: "The net proceeds from the offering will substantially
improve America Online's cash position, lower our financing costs and increase
our flexibility to continue making investments which will strengthen our
business.
"The net proceeds will be used for general corporate purposes, workingcapital, capital expenditures and investment in content, programming and other
assets."
Neither the Notes nor the common stock issuable upon conversion have been
registered under the Securities Act of 1933 (the "Securities Act") and may not
be offered or sold in the United States except pursuant to an effective
registration or an applicable exemption from the registration requirements of
the Securities Act.
This news release shall not constitute an offer to sell or the solicitation
of an offer to buy the Notes. This news release is being issued pursuant to
and in accordance with Rule 135c under the Securities Act.
America Online Inc., based in Dulles, founded in 1985, operates three
business units: AOL Networks is the world's most popular Internet service,
providing its more than 9.4 million members worldwide with easy-to-use,
convenient information, entertainment and state-of-the-art features and
products supported by world-class member support; AOL Studios develops
original content programming and interactive properties for AOL Networks,
Internet Service Providers, other online services, independent Internet sites,
and other media companies; and ANS Communications is a leading provider to businesses, including AOL, of global network communications systems and
services. |
