Vonage Secures Additional Financing
Date: October 21, 2008
By: AVAD Administrator
October 19, 2008
Business New Wire
After months of negotiations, Vonage today said it has signed a commitment letter with a Greenwich, Conn. firm establishing the terms and conditions of up to $215 million in private debt financing to refinance debt that comes due at the end of the year.
Silver Point Finance LLC signed a commitment letter to provide $125 million provided the Holmdel Internet phone company lines up financing from other lenders to provide at least another $60 million in private debt financing.
If so, Vonage plans to use the net proceeds from the financing, plus cash on hand to repurchase $253 million in convertible debt that comes due in mid-December.The uncertainty of the refinancing of the debt has been a drag on the company's stock since the beginning of the year.
