BiznessOnline.com Announces Debt and Equity Restructuring with MCG Finance Corporation.Business Editors WALL, N.J.--(BUSINESS WIRE)--Jan. 7, 2002 BiznessOnline.com, Inc. (OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). BB: BIZZ) announced that its senior lender MCG Capital Corporation (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : MCGC MCGC MCG Capital Corporation MCGC Michigan Color Guard Circuit MCGC Malaysia Cocoa Growers Council ) has converted $5 million of BiznessOnline.com's outstanding debt into a new series of Senior Preferred Stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. of the company and increased BiznessOnline.com's line of credit by an additional $750,000. MCG has also restructured the remaining debt to provide enhanced liquidity and delay the commencement of principal payments until May 2003. Mark E. Munro, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of BiznessOnline.com commented, "We are pleased that MCG has demonstrated their commitment to our business model and to our future prospects. This restructuring will allow us to focus on strengthening our business through customer acquisition and retention while we continue to explore other strategic alternatives for the company. Our customers, vendors, employees and shareholders should be pleased by MCG's conversion and additional capital infusion Capital infusion Often refers to the cross-subsidization of divisions within a firm. When one division is not doing well, it might benefit from an infusion of new funds from the more successful divisions. ." Steven Tunney, President of MCG said, "MCG is committed to supporting BiznessOnline.com through these difficult times in the capital markets. We believe that this restructuring will allow the company to focus it efforts on providing high value services to its customers." BiznessOnline.com BiznessOnline.com is one of the Northeast's leading integrated communications providers, and offers customers co-location, e-commerce development, Web design and hosting services, high-speed Internet access and local/long distance telco services. Committed to satisfying the increasing Web and telecommunications needs of businesses, BiznessOnline.com provides bundled, advanced IP and essential telco services. Customers' secure broadband and Internet connections are served via BiznessOnline.com's state-of-the-art Internet Data Centers and fault-tolerant, fiber-optic backbone network, and are supported by the Company's 24x7 customer care and network monitoring. The Company can be found on the World Wide Web at www.biznessonline.com. MCG Finance can be found at www.mcgcapital.com. "Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " Statement under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995: This release contains forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from those set forth in the forward-looking statements, including but not limited to risks inherent to the Company's ability to retain and grow its customer base and consummate a merger, sale or other strategic transaction, the ability to repay its senior debt, market demand for the Company's services and other factors affecting the highly competitive and volatile telecommunications and Internet industry. Please refer to BiznessOnline.com's reports from time to time filed with the Securities and Exchange Commission, including the Company's Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. filed on April 2, 2001 and the Company's Form 10Q filed on November 14, 2001, for a further discussion of risk factors that may affect the Company's operating and financial results. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release. |
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion