By Sheri Kasprzak
Atlanta, Nov. 12 - ITC^DeltaCom Inc. closed the private placement of its series B convertible redeemable preferred stock Friday for $15 million.
The company sold 150,000 shares of the 8% series B convertible shares at $100 each to Welsh, Carson, Anderson & Stowe VIII LP and its affiliate, all of which were involved in ITC^DeltaCom's acquisition of BTI Telecom Corp.
The shares are convertible into common shares for an initial conversion price of $3 per share. The conversion price is obtained by dividing the $100 liquidation preference per share plus the accrued and unpaid dividends by the conversion price applicable to such share. The dividends accrue at 8% annually.
The shares are convertible at any time the series B shares are outstanding, but the company is not required to redeem any series B shares until Oct. 29, 2012 and does not have the right to redeem any series B preferred shares until Oct. 6, 2006.
ITC^DeltaCom is a West Point, Ga.-based telephone company. The private placement is part of the company's merger.
| Issuer: | ITC^DeltaCom Inc.
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| Issue: | Series B convertible redeemable preferred stock
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| Amount: | $15 million
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| Shares: | 150,000
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| Price: | $100
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| Conversion price: | $3 (initial price)
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| Dividend: | 8%
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| Warrants: | No
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| Investors: | Welsh, Carson, Anderson & Stowe VIII LP
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| Announcement date: | Nov. 12
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| Settlement date: | Nov. 12
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| Stock price: | $2.46 at close Nov. 12
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