IDT Consummates Tender Offer and Secures $150 Million in
Financing Positions Company to Pursue Financing for Net2Phone
HACKENSACK, N.J.--(BUSINESS WIRE)--May 11, 1999--IDT Corporation
(NASDAQ: IDTC) announced today that it has consummated the tender offer
for its 8.75% Senior Notes due 2006 (the "Notes"), having repurchased
$99,620,000 of $100,000,000 principal amount of the Notes originally issued
in February 1998.
With 99% participation by the Note holders in the Tender Offer, the
supplemental indenture relating to the remaining Notes outstanding has become
operative, enabling the Company to effect one or more possible financing
transactions involving Net2Phone.
As previously reported, Net2Phone has executed a term sheet with more than
one significant strategic investor relating to an investment in Net2Phone's
equity securities, and Net2Phone is negotiating with other significant investors.
IDT secured a $150 million credit facility to repurchase the tendered Notes, and
may use the balance of funds to fund capital expenditures and for general
working capital purposes.
IDT is a leading emerging multinational carrier that combines its 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.
This press release contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. Such forward-looking statements include IDT's
expectations concerning, among other things, its ability to receive sufficient
funds to repurchase the tendered Notes and to consummate the offer. These
statements, made as of the date of this press release, are based upon current
expectations and are subject to risks and uncertainties that could cause actual
results to differ materially from those projected including IDT's ability to obtain
the credit facility and Net2Phone's ability to consummate the sale of equity
securities to strategic investors.
IDT assumes no obligation to update the forward-looking statements, or to
update the reasons why actual results could differ from those projected in the
forward-looking statements. Investors should consult all of the information set
forth herein and the other information set forth from time to time in IDT's
reports filed with the Securities and Exchange Commission pursuant to the
Securities Act of 1933 and the Securities Exchange Act of 1934, including the
Company's Annual Report on Form 10-K, as amended, for the year ended July
31, 1998, and its Quarterly Reports on Form 10-Q for the three months ended
October 31, 1998 and January 31, 1999.
CONTACT: IDT Finance, Hackensack
David Brainson, 201/928-4363
davidb@corp.idt.net |
