i2 Telecom exchanges $5.5 million in debt for subsidiary's preferreds

By Devika Patel

Knoxville, Tenn., Aug. 3 - i2 Telecom International, Inc. said it exchanged about $5.5 million of its promissory notes into subsidiary i2Telecom IP Holdings, Inc.'s preferred stock.

Due to a recent convertible preferreds financing, it was necessary to exchange at least 85% of the approximately $6.3 million in debt securities.

The balance of approximately $800,000 in remaining debt has either been retired or is about to be retired for cash.

The preferreds pay 12% in dividends.

"I am pleased to report this very significant event," the company's chairman and chief financial officer Paul Arena said in a press release. "I believe that this action taken on behalf of the company and its shareholders underscores the level of confidence that our larger investors have placed in the value of our management, operational capabilities and our growing intellectual property portfolio."

Atlanta-based i2 Telecom provides voice-over-internet protocol services to telecommunications companies.

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