Vonage (NYSE: VG) may finally be free of its financial troubles as the VoIP provider announced this week it has completed its refinancing process.
With its new $200 million, five-year term loan facility, Vonage says it will have "a more efficient capital structure," adding that it "is the result of the company's solid financial and operating performance highlighted by EBITDA and free cash flow generation of $150 million over the past 12months."
On Tuesday, Vonage completed the refinancing process, replacing its first, second and third lien debt totaling $194 million with 16 to 20 percent interest rates. Vonage said that the new lower cost facility will be accretive to 2011 net income by approximately 45 percent and will reduce interest expense by $20 million from 2010.
"Today's announcement of our successful refinancing begins a new and exciting chapter in Vonage's history," said Marc Lefar, Vonage's Chief Executive Officer in a release. "This transforming event, combined with our strong cash flow and the stabilization of our customer base, provides a very strong platform on which to continue to build the future of Vonage."
- see the release
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