*****NEWS***** BT ALEX BROWN(BSNS WIRE) IDT Announces Consent Solicitation
IDT Announces Consent Solicitation
Business Editors
HACKENSACK, N.J.--(BUSINESS WIRE)--February 2,
1999--IDT
Corporation (NASDAQ: IDTC) announced today that it is
soliciting the
consent of the holders of its 8.75% Senior Notes due 2006 to
certain
proposed amendments to the terms of the Notes. The Notes,
of which an
aggregate principal amount of $100,000,000 are currently
outstanding,
were issued in February 1998.
The offer will remain open until 5:00 P.M. on February 17,
1999,
unless otherwise extended. Under the terms of the offer, each
holder
of the Notes who delivers a properly completed and executed
consent
form approving the proposed amendments prior to the
expiration date
will receive a cash fee equal to $10.00 per $1,000 principal
amount of
Notes held by such holder. IDT is soliciting the consent to
the
proposed amendments primarily for the purpose of enabling
IDT to
effect one or more possible financing transactions involving
Net2Phone, Inc., a Delaware corporation and the subsidiary
of IDT that
conducts IDT's Internet telephony operations. Such a
transaction may
consist of the issuance of Net2Phone's capital stock to private
investors or to the public.
expressed an interest in making equity investments in
Net2Phone.
However, no assurances can be given that any such
transaction will in
fact occur. In addition, the proposed amendments are
intended to
facilitate IDT's ability to enter into a proposed credit facility
with
a group of financial institutions and to effect several other
revisions to the Indenture governing the Notes that are
intended to
provide IDT with greater operating flexibility. Holders of the
Notes
as of the Record Date will receive a written consent
solicitation
which will describe the terms of the consent solicitation and
the
terms of the proposed amendments in greater detail.
The consent solicitation is being made to all persons who
were
registered holders of the Notes as of the record date February
1,
1999, including DTC participants who held Notes through
The Depository
Trust Company as of such date. The proposed amendments
require the
consent from the holders of not less than a majority in
aggregate
principal amount of the outstanding Notes.
BT Alex. Brown Incorporated is serving as the Solicitation Agent for the consent
solicitation, and
U.S. Bank Trust National Association, the trustee under the
Notes, is
serving as the Depositary.
position as an international telecommunications operator, its
experience as an Internet service provider and its leading
position in
Internet telephony to provide a broad range of
telecommunications
services to its wholesale and retail customers worldwide. The
company
provides its customers with integrated and competitively
priced
international and domestic long distance, pre-paid calling
cards,
Internet access and, through its Net2Phone product offerings,
Internet
telephony services including Net2Phone Direct, Net2Fax,
and
Click2Talk.
--30--cf/ny* |
