Dec 13, 2002 : NaviSite Announces Debt Restructuring

📅 December 13, 2002 - Managed hosting service provider NaviSite Inc. (NaviSite.com 👉 Total Reviews: 1
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As part of the transaction, says NaviSite, CBT has exercised its right to convert $20 million of its $65 million aggregate principle amount of convertible debt into approximately 77 million shares of NaviSite equity at 26 cents per share. Following the transaction, CBT plans to distribute its NaviSite equity to its shareholders. As a result, ClearBlue Atlantic LLC and Hewlett Packard Financial Services will hold 86 percent and 20 percent of NaviSite, respectively.
Along with the debt restructuring, CBT has waived its right to receive interest payments on the remaining debt from NaviSite during 2003 and has accepted fourth quarter 2002 interest payment in the form of stock. CBT has also cancelled warrants to purchase an aggregate of 5.2 million shares of NaviSite common stock at prices ranging from $5.77 to $6.92 per share.
NaviSite's board of directors has approved a reverse stock split at a ratio of one for fifteen, to take place on January 7, 2003. The company says it is taking the action to reduce the total issued and outstanding share cound from approximately 181 million to 12 million shares. Shareholders with fractional shares would instead receive payment in cash.