Evercom reaches agreement on restructuring, notes to be exchanged for 98% of equity

New York, Dec. 5 - Evercom said it reached an agreement in principle on a debt restructuring with its senior lenders and an ad hoc committee of holders of its subordinated bonds.

Under terms of the agreement, the subordinated debt will be exchanged for 98% of the company's equity.

Existing stockholders will retain 2% of the company plus warrants to buy additional shares at "significantly higher" prices.

Evercom said it expects to close the transaction in early 2003.

The Irving, Texas inmate telecommunications company said the restructuring will reduce debt to a level that "can comfortably be serviced by cash flow from operations."

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