By Susanna Moon
Chicago, Oct. 22 - Fusion Telecommunications International, Inc. executed a letter of intent on Oct. 16 with two private funds for $30 million of five-year senior notes, according to an 8-K filing with the Securities and Exchange Commission.
The interest rates will range from 10% to 13% with a weighted average interest rate of 11.45%.
The debt will be issued in connection with the company's proposed acquisition of assets constituting the business currently operated by Broadvox Go! LLC and Cypress Communications, LLC.
Annual principal payments of $600,000, payable monthly, will begin one year after issue, with the remainder due at maturity.
Fusion also will issue warrants to purchase shares of its common stock in an amount equal to 6.75% of the outstanding common stock at the time of issue.
Fusion is a telecommunications company based in New York.
| Issuer: | Fusion Telecommunications International, Inc.
|
| Issue: | Senior notes
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| Amount: | $30 million
|
| Maturity: | Five years
|
| Coupons: | 10% to 13% with weighted average rate of 11.45%
|
| Warrants: | For up to 6.75% of company's outstanding common stock
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| Pricing date: | Oct. 16
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| Stock symbol: | OTCBB: FSNN
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| Stock price: | $0.14 at close Oct. 15
|
| Market capitalization: | $32.82 million
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