Vonage Holdings tenders for 5% convertibles due 2010

By Jennifer Chiou

New York, July 30 - Vonage Holdings Corp. said it began a cash tender offer for any and all of its 5% senior unsecured convertible notes due 2010.

The tender offer is being made in connection with the proposed refinancing of Vonage's debt.

Under the terms of the refinancing, Vonage said on July 24 that it is required to tender for the about $253 million of notes, which have a put option on Dec. 16.

For each $1,000 principal amount, the company will pay par plus accrued interest.

Vonage said that it is seeking tenders from holders of at least $185 million of notes, the receipt of the proceeds from a $95 million senior secured first-lien credit facility and the issue by Vonage and its wholly owned subsidiary, Vonage America Inc., of $90 million of convertible secured second-lien notes.

The offer ends at midnight ET on Aug. 27.

D.F. King & Co., Inc. is the information agent (call collect 212 269-5550 or 888 628-9011). Miller Buckfire & Co., LLC is the dealer manager.

Holmdel, N.J.-based Vonage Holdings is a provider of broadband telephone services.

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