Internet Capital cuts convertibles below $100 million through exchanges

New York, Jan. 23 - Internet Capital Group Inc. said it cut the outstanding amount of its 5½% convertible subordinated notes due December 2004 below $100 million to $96.8 million through exchanges of the securities for common stock.

By comparison, as of Nov. 14 the company had $193.8 million of the convertibles outstanding, according to a filing with the Securities and Exchange Commission.

Internet Capital said in the same filing that it does not have sufficient cash, cash equivalents, restricted cash, short-term investments and available-for-sale securities to satisfy these convertible notes at maturity.

"Reducing our debt to below the $100 million threshold is an important milestone for our company," said Walter Buckley, Internet Capital's chairman and chief executive officer, in a news release.

"At this level we are better positioned and are actively pursuing refinancing opportunities to resolve the remainder of our convertible debt obligations. As we continue to drive our partner companies to profitability, retiring the outstanding convertible notes through exchanges or refinancing continues to be a top priority."

Following the latest exchanges, the Wayne, Pa., information technology company had 606.7 million shares outstanding, up from 288.0 million at Sept. 30, at which point it had $223.2 million of the convertibles outstanding.

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