Talk America to redeem some 12% notes

New York, Nov. 5 - Talk America said that it has called for redemption $15 million of its 12% senior subordinated notes due 2007 at par plus accrued interest. The redemption date will be Jan. 5, 2004.

Talk America, a Reston, Va.-based provider of bundled local and long distance phone service, said that it will use cash on hand to fund the redemption. The transaction will have a positive impact on the company's net income and earnings per share, due to the elimination of interest expense associated with the notes.

The company also said that as a result of this transaction, its total debt will be reduced to about $30.5 million from $101 million at the beginning of 2003.

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