Verticalnet buys back $13.85 million 5¼% convertibles

New York, July 30 -Verticalnet, Inc. said it bought back a further $13.85 million of its 5¼% convertibles debentures, eliminating 64% of its long-term debt.

The Malvern, Pa. supply chain management company said it paid $2.9 million for the convertibles including $2.1 million in cash and $0.8 million in stock, equivalent to 1.27 million shares.

The repurchases were part of the company's efforts to strengthen its balance sheet, reduce financial obligations, and increase shareholder value, Verticalnet said.

On June 28, the company completed the repurchase of $106.0 million of outstanding Series A preferred shares for $5.0 million in cash.

Verticalnet said the transaction was completed on the same terms and conditions with two separate bondholders, Alexandra Investment Management LLC, a third party unaffiliated bondholder, and Internet Capital Group, a principal shareholder of the company. The repurchase increases Internet Capital's interest in Verticalnet to 31.0%.

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