iBasis issues 17.6 million shares for all $32.6 million 6¾% convertibles, now free of bond debt

By Jennifer Chiou

New York, Sept. 6 - iBasis, Inc. said it has eliminated all its bond debt after issuing 17.6 million shares in exchange for all $32,599,000 of its 6¾% convertible subordinated notes due June 2009.

The company previously announced it would redeem all the notes at par plus accrued interest on Sept. 6.

Prior to the close of business on Sept. 2, all noteholders converted their notes to iBasis stock at $1.85 per share.

"This is an amazing accomplishment, which has provided immediate benefits for iBasis investors in the form of dramatically increased stockholders equity and reduction of our interest expense," president and chief executive officer Ofer Gneezy said in a news release.

"We started our campaign to eliminate $150 million in bond debt more than three years ago and through advantageous repurchases, exchanges and conversions, we have achieved one of our major financial goals."

The Bank of New York was trustee.

As previously reported, the company converted $1.2 million of the notes at $1.85 per share in separate voluntary conversions on June 23.

Based in Burlington, Mass., iBasis is a wholesale carrier of international long distance telephone calls and a provider of retail prepaid calling services. Its stock closed up $0.06 at $2.46 on Tuesday.

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