Executive TeleCard Announces Retirement of Debt
PR Newswire - February 27, 1998 13:28
DENVER, Feb. 27 /PRNewswire/ -- As announced February 25, 1998, Executive
TeleCard (Nasdaq: EXTL) has signed a strategic agreement with IDT Corporation
(Nasdaq: IDTC) under which IDT has loaned Executive Telecard $7.5 million for
the retirement of debt. The Company had outstanding debt with a financial
institution (ING Capital) from June 1996 that was extended in June 1997 until
April 1998. The Company has retired debt which includes the $6.5 million loan
with ING Capital, and a $500,000 loan with Network Data Systems, Ltd. and has
allocated the remaining $500,000 to other debt. The terms of the new loan
with IDT will substantially decrease interest payments, and alleviates the
approaching deadlines that were previously in place. The Company now has an
18 month note with one creditor with an 8 7/8% interest rate. This new
relationship represents a beneficial strategic relationship, has favorable
terms, and provides a longer term plan for debt.
"This represents a very favorable relationship. IDT and Executive
TeleCard have agreed to cross marketing service arrangements. The new
alliance with IDT creates a venue for growth, access to markets in Europe and
Latin America and favorable pricing for services on IDT's routes. The Company
expects to realize considerable reductions in cost of services that will be
reflected in the bottom line. The Company has initiated a pilot program for
providing platform services for IDT with long term goals of becoming the
primary calling card service provider," said Christopher Vizas, CEO of
Executive TeleCard.
Executive TeleCard, founded in 1987, is an international communications
service company providing voice and data services via its World Direct global
network to major corporate and carrier partners worldwide and providing
enhancements to its partners' global calling cards. Executive TeleCard's
products and services include: global calling card services, national calling
card platform services, global internet access (eGlobe), international and
domestic toll-free service (Service 800) and multi-currency, detailed billing. |
