Internet Capital Group Retires Remaining Outstanding Convertible Debt.WAYNE, Pa. -- Internet Capital Group, Inc. (Nasdaq:ICGE) today announced that it has retired all of its outstanding 5% convertible notes. The notes were due to mature in April 2009 and were convertible into shares of ICG ICG indocyanine green. Common Stock at a price of $9.108 per share. Pursuant to agreements with the remaining holders of the notes, ICG repurchased $26.6 million face amount of notes for approximately $37.1 million, plus accrued interest Accrued Interest The interest that has accumulated on a bond since the last interest payment up to but not including the settlement date. There are two methods for calculating accrued interest: 1) 360-day year method, used for corporate and municipal bonds. . By repurchasing the notes, ICG removed the future dilutive effect Dilutive effect Result of a transaction that decreases earnings per common share (EPS). of the approximately 2.9 million shares of Common Stock into which the notes could have been converted. Additionally, the elimination of restrictive covenants Restrictive covenants Provisions that place constraints on the operations of borrowers, such as restrictions on working capital, fixed assets, future borrowing, and payment of dividends. related to the notes provides ICG with greater flexibility with respect to potential uses of its capital. "We are very pleased to report that, for the first time since 1999, ICG is free of debt," said Walter Buckley, ICG's chairman and 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. . "Through the prudent use of our capital, we have removed the burden of debt from our balance sheet. As we execute on our strategy to acquire and build leading on-demand companies, we will continue to evaluate the best use of our capital, as it relates to the creation of stockholder value, without debt-imposed restrictions." About Internet Capital Group Internet Capital Group (www.internetcapital.com) acquires and builds Internet software companies that drive business productivity and reduce transaction costs Transaction Costs Costs incurred when buying or selling securities. These include brokers' commissions and spreads (the difference between the price the dealer paid for a security and the price they can sell it). between firms. Founded in 1996, ICG devotes its expertise and capital to maximizing the success of these platform companies, which deliver on-demand software and service applications to customers worldwide. Safe Harbor Statement under 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 The statements contained in this press release that are not historical facts are forward-looking statements that involve certain risks and uncertainties including but not limited to risks associated with the uncertainty of future performance of our partner companies, acquisitions or dispositions of interests in partner companies, the effect of economic conditions generally, capital spending by customers, development of the e-commerce and information technology markets, and uncertainties detailed in the Company's filings with the Securities and Exchange Commission. These and other factors may cause actual results to differ materially from those projected. |
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