iBasis exchanges $8 million convertibles for new notes, warrants

New York, Feb. 25 - iBasis, Inc. said it exchanged $8 million of its 5.75% convertible subordinated notes due 2005 for a combination of new notes and warrants.

"This exchange agreement is a continuation of our efforts to reduce our overall debt and improve shareholder equity," said Ofer Gneezy, president and chief executive officer of iBasis, in a news release. "Inclusive of this agreement, we have reduced our convertible debt and capital lease debt by approximately $131 million since early in Q4 of 2001."

Under the transactions, with a single holder, iBasis exchanged the $8 million of convertibles for $4 million principal amount of new 11.5% senior secured notes due Jan. 15, 2005 and warrants for 727,627 shares of common stock. The warrants have an exercise price of 65 cents per share and a term of five years. iBasis stock closed at 47 cents Monday.

iBasis is a Burlington, Mass. provider of wholesale international telecommunications services.

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