By Sheri Kasprzak
New York, July 15 - Trinsic, Inc. said it has exchanged all its outstanding debt into series H preferred stock and also sold another $2.5 million in series H preferreds.
The company exchanged $21.5 million in debt into an equal amount of series H preferreds in an agreement reached with The 1818 Fund III, LP, for a total of $24 million in preferreds issued.
The 1818 Fund also bought $2.5 million of the preferreds.
The preferreds are convertible into common shares at $0.39 each.
Although the preferreds do not initially pay annual dividends, beginning Jan. 1, 2006, if the preferreds have not been converted, the holders may receive dividends at 12.5% annually.
The company also announced that it plans to conduct a common stock rights offering, allowing certain shareholders the opportunity to buy one common share per right.
The number of shares issuable will be determined by the conversion price of the company's series H preferred stock on Sept. 30. At the current rate, that would be 2.4 rights per share.
Based in Tampa, Fla., Trinsic is a local-exchange telephone carrier.
| Issuer: | Trinsic, Inc.
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| Issue: | Series H preferred stock
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| Amount: | $2.5 million
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| Conversion price: | $0.39
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| Dividends: | 0%, initially; 12.5% after Jan. 1, 2006, if preferreds are not converted into common shares
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| Investor: | The 1818 Fund III, LP
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| Settlement date: | July 15
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| Stock price: | $0.57 at close July 14
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