iBasis converts $12.3 million notes to 6.6 million shares, cash

By Jennifer Chiou

New York, June 23 - iBasis, Inc. said it has converted $12.3 million of notes to 6.6 million common shares at $1.85 per share, the original conversion price, plus payment of incentives.

The company exchanged $9.1 million of 8% secured convertible notes due 2007 and $2 million of 6.75% convertible subordinated notes due 2009 for stock, encouraging early conversion with premiums of $661,000 in cash and stock.

In separate voluntary conversions, $1.2 million of 6.75% convertible subordinated notes were converted at their $1.85 conversion price.

Overall debt reduction will push annual interest payment savings to $940,000 and the company's long-term debt is now $52.4 million.

The Burlington, Mass.-based company is a wholesale carrier of international long distance telephone calls and a provider of retail prepaid calling services.

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