SendTec exchanges $18.36 million senior secured convertible debentures in first restructuring closing

By Caroline Salls

Pittsburgh, March 26 - SendTec, Inc. has completed the first closing on the recapitalization and restructuring of its senior secured convertible debentures due March 31, 2008, according to a company news release.

At the first closing, $18.36 million of the original debentures were exchanged for series B preferred stock, and the interest due on the debentures through Nov. 16, 2007 was paid.

In conjunction with this first closing, members of the company's management team purchased a total of 7.3 million shares of common stock.

SendTec said the remaining $14.37 million of debentures will be exchanged at a future second closing.

"I believe that we now have an opportunity to focus on growing the business and adding value to our shareholders," chairman and chief executive officer Paul Soltoff said in the release.

"I believe that we are now in a more stable financial position that will enable the management team and employees of SendTec to focus on executing our business model."

SendTec is a St. Petersburg, Fla., multichannel customer acquisition direct marketing agency.

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