By Sheri Kasprzak
New York, Feb. 7 - OneTravel Holdings, Inc. said it received an extension on its deadline for having the registration statement connected to $10 million in convertible debentures declared effective.
The extension means the company has been spared from an event of default under the debentures.
The registration statement covering the underlying shares of the debentures must now be declared effective by Oct. 31, 2006, pushed back from June 20.
If the statement is not declared effective by then, the company must pay liquidated damages at 1.5% of the total principal held by each investor in exchange for another extension on the deadline to Jan. 2, 2007.
In consideration for the extension, the holders of the $10 million in debentures were granted additional principal equal to 25% of the original debentures - for a total of $2.5 million in additional debentures.
The 9% debentures are due Oct. 21, 2008 and are initially convertible into shares at $2.55 each with a $2.36 floor.
The additional debentures may be redeemed at 100% of the principal amount plus interest.
The original debentures were first issued on Oct. 21.
Based in Atlanta, OneTravel is a holding company for travel services concerns.
| Issuer: | OneTravel Holdings, Inc.
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| Issue: | Convertible debentures
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| Amount: | $2.5 million
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| Maturity: | Oct. 21, 2008
|
| Coupon: | 9%
|
| Price: | Par
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| Yield: | 9%
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| Conversion price: | $2.55 with a $2.36 floor
|
| Call: | Redeemable at 100% of principal plus interest
|
| Warrants: | No
|
| Settlement date: | Jan. 31
|
| Stock symbol: | AMEX: OTV
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| Stock price: | $1.83 at close Jan. 31
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