Monday, October 20, 2008

Vonage Dodges a Bullet

Vonage has Vonage has signed definitive agreements to refinance its convertible debt, a move that virtually everybody assumed was essential for Vonage to stay in business, and about which there has been doubt in some quarters. 

The financing package consists of a $130.3 million senior secured first lien credit facility, a $72.0 million senior secured second lien credit facility, and the sale of $18.0 million of senior secured third lien convertible notes.

Vonage says it will use the net proceeds of the financing along with its own cash on hand to repurchase up to $253.5 million of the company's existing convertible notes in a tender offer commenced on July 30, 2008. 


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