New York, April 21 - Viatel said it finalized an offering of $52 million of 8% senior secured 10-year convertible bonds.
The securities were sold to six investors including Morgan Stanley & Co. Inc.
The term sheet for the deal was signed in February.
Viatel, an Egham, Surrey, U.K.-based telecommunications company, previously said that once it closes on the deal its business plan will be fully funded.
The notes convert into stock at a price contingent on the value of Viatel upon the occurrence of specified liquidity events.
Viatel said the $52 million was funded in a single draw. The original term sheet had put the deal at $50 million in size with upsizing to as much as $60 million possible.
The notes are issued under Rule 144A with registration rights.
Terms of the convertible are:
| Issuer: | Viatel Holding (Bermuda) Ltd.
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| Issue: | Convertible senior secured notes
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| Amount: | $52 million
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| Maturity: | 10 years
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| Coupon: | 8%, in cash or kind at Viatel's option
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| Conversion period: | After nine years or on occurrence of liquidity event (change of majority owner, liquidation, reorganization, IPO, default)
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| Conversion price: | $0.75 on occurrence of liquidity event
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| Otherwise, average of $0.75 for company equity value of $100 million rising in steps to an average of $3.75 for company equity value of $800 million
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| Call: | After nine years
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