Apr, 2002 : PRIMUS Telecommunications Obtains Additional Financing

📅 April 12, 2002 - PRIMUS Telecommunications Group, an Internet Service Provider, today announced that it has obtained additional financing and further reduced its debt. Increasing its existing credit line, RFC Capital Corporation, a division of Textron Inc, has given PRIMUS (primustel.com) an additional US $20 million. The company hopes to achieve positive free cash flow from operations and financial self-sustainability.

PRIMUS also announced that it has reached a settlement with vendors, reducing debt and related future commitments by $19.5 million. The company paid $5 million in cash, and will pay an additional $1.5 million by April 2, 2003. Additionally, PRIMUS has issued 1,200,000 shares of its common stock to the vendors for the elimination of $17.8 million in existing debt and $1.7 million in future related service obligations. Assuming the vendor debt was held to maturity, the vendor debt represents interest payments of $1.2 million in 2002, and would account for an additional $1.4 million in future interest savings as well as the elimination of principal payments which were scheduled to have been made over the next four years.