May, 2003 : Terremark Raises $25 Million, Restructures Debt

📅 May 1, 2003 - Terremark Worldwide, Inc., (terremark.com 👉 Total Reviews: 3
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The company also announced that it issued shares of its common stock at $0.75 each to CRG, one of its investors, in exchange for $22.6 million in debt originally owed by the company to Cupertino Electric and Kinetic Systems. It has also converted $15 million of the company's debt to Ocean Bank at $0.75 per share and extended the term of the remaining $28.9 million until April 30, 2006.
"Over the past six months, Terremark has been working diligently to transform its financial standing," said Terremark's Chairman and CEO, Manuel D. Medina.
He added that the results of these efforts are tremendous achievements in the present economic environment. ?Terremark's balance sheet will improve substantially by virtue of the conversion of $54 million in debt to equity at $0.75 per share and the elimination of approximately $5.2 million in annual interest payments. Based on our existing contracts, including those recently announced with the U.S. Government and new enterprise customers, and the strength of our sales pipeline, we expect to achieve cash flow break even by the end of the calendar year. The proceeds from these closings give the company sufficient liquidity to fully fund operations through projected cash flow break even."
With headquarters in Miami, Terremark is a designer, builder and operator of integrated Tier-1 network access points (NAP) and data centers.