Telehop restructuring converts 25% of debentures, cuts coupon to 7½%

By Wendy Van Sickle

Columbus, Ohio, Jan. 23 – Telehop Communications Inc. completed its agreement with its C$3 million debenture holders to effect a partial conversion of the debentures into common shares, reduce the interest rate on the remaining balance and extend the final maturity date, according to a press release.

The restructuring includes the following:

• Effective Dec. 31, the annual interest rate on the debentures was cut to 7½% from 10%;

• The company must pay C$150,000 of principal on Dec. 31, 2018 and a further C$300,000 of principal on Dec. 31, 2019, with payment of the remaining principal on Dec. 31, 2020, and any other prepayment of principal subject to a penalty of 2% of the amount prepaid;

• The repayment of the principal by the corporation will be secured by a general security agreement on all of its assets, subject to postponement in favor of any prior general security agreement that may be issued by the corporation in favor of the corporation's institutional banker up to C$500,000; and

• C$750,000, or 25%, of the outstanding principal amount, excluding accrued interest, was converted pro rata among all debenture holders into common shares of the corporation at C$0.05 a share, resulting in the issuance of 15 million common shares of the corporation.

The common shares are subject to four-month hold that expires on May 1.

Toronto-based Telehop is an alternative telecommunications provider to both residential and business customers.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.