Quick Facts
FONT-SIZE Plus   Neg
Share SHARE

Dialogic Announces A $39.5 Mln Debt Exchange - Quick Facts

Dialogic Inc. (DLGC: Quote) announced that it has signed securities purchase agreements with a broad group of its largest existing shareholders and their affiliates.

As per the terms of the securities purchase agreement, the purchasers have been issued convertible notes in the amount of $39.53 million in exchange for debt and term loan pre-payment premiums.

The convertible notes will be converted into common shares in Dialogic Inc. upon stockholder approval, which is expected at the June stockholder's meeting.

All debt and loan pre-payment premiums covered by the convertible notes will be exchanged at the rate of $1.00 per share of common stock with the exception of $2.96 million representing interest from the first quarter of 2012 that was not paid in cash, was added to principal and will now convert at the rate of $0.87 per share of common stock.

Upon the conversion of the convertible notes into common shares following stockholder approval, the company said that it expects to reduce the principal of its long-term debt held by Tennenbaum Capital Partners, LLC and certain of its affiliates from $92.83 million to $59.88 million, to eliminate its related party long-term debt of $5.07 million and to increase its common shares outstanding from 31.48 million to approximately 71.45 million.

The Company expects to reduce its 2012 quarterly cash interest by $2.60 million or $10.60 million annually.

Register
To receive FREE breaking news email alerts for Dialogic Corporation and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
The Islamic State (IS), a Sunni extremist group previously known as Islamic State of Iraq and the Levant (ISIL), has released a video purporting to show the beheading of US journalist Steven Sotloff, media reports said Tuesday. According to reports, the video also showed a masked man threatening to execute a British man named David Haines. He also warned governments to stay away "this evil allian Less than a month after resigning from Congress, former House Majority Leader Eric Cantor, R-Virg., has made the move from Washington to Wall Street by joining boutique investment bank Moelis & Co. A statement from Moelis said Cantor will serve as Vice Chairman and Managing Director and also be elected to the company's Board of Directors. Stocks continue to show a lack of direction in mid-day trading on Tuesday following the long, holiday weekend. Even with the lackluster performance, the markets are largely holding on to the bulk of their recent gains.
comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.