Primus Telecommunications holders exchange $130.3 million of notes for new 14¼% notes

By Angela McDaniels

Tacoma, Wash., May 22 - Primus Telecommunications Group, Inc. said holders of $130.3 million of its existing notes agreed to exchange their notes for $67.1 million of newly issued 14¼% senior secured notes and $4.7 million in cash.

The new notes were issued under an existing indenture by indirect wholly owned subsidiary Primus Telecommunications IHC, Inc., according to a company news release.

The $130.3 million of notes exchanged included:

• $5.3 million of 12¾% senior notes due 2009 issued by Primus;

• $43 million of 3.75% convertible senior notes due 2010 issued by Primus;

• $33 million of 5% exchangeable senior notes due 2010 issued by subsidiary Primus Telecommunications Holding, Inc.; and

• $49 million of 8% senior notes due 2014 issued by Primus Telecommunications Holding.

The company said the private exchange transactions reduced its debt by $63.2 million and will increase its annualized cash interest expense by about $1.7 million.

Primus is an integrated communications services provider based in McLean, Va.

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