FiberTower expects to pay May interest on 9% convertibles in kind

By Jennifer Chiou

New York, May 7 - FiberTower Corp. right now intends to pay the May interest due on its 9% convertible senior secured notes due 2012 in kind, according to a 10-Q filing with the Securities and Exchange Commission.

The company has the option to pay interest on the notes via the issuance of additional notes through the November interest payment. After that period, interest must be paid in cash.

The in-kind interest rate is 11% while the cash rate is 9%.

FiberTower elected to pay the May and November 2009 interest payments entirely in kind, which resulted in the issue of an additional $33.5 million of the notes.

The San Francisco-based company is a backhaul and access services provider focused primarily on the wireless carrier market.

© 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.