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VALUE-ADDED ANNOUNCES $14.5M IN NEW AND EXTENDED FINANCING ARRANGEMENTS TO LOWER CALL BILLING COSTS AND SUPPORT EQUIPMENT INSTALLATIONS

 DALLAS, Nov. 2 /PRNewswire/ -- Value-Added Communications, Inc. (NASDAQ-NMS: VACI) today announced two new financing agreements totaling $12 million and the extension of a third financing agreement of $2.5 million. The total of $14.5 million in new and extended financing will help the company lower its call billing costs and support the continuing placement of its telecom transaction processing equipment. In another development, Value-Added announced a joint technology agreement with Intellicall, Inc. (NYSE: ICL) of Carrollton, Texas.
 Additional Receivables Line-of-Credit
 For the first time ever, Bell Atlantic Capital Corp., a subsidiary of Bell Atlantic Corp. (NYSE: BEL), has extended a $10 million line of credit to VAC to be used to finance the expansion of its billing arrangements with Local Exchange Carriers. VAC's Chief Financial Officer David R. Henkel stated, "This additional line-of-credit will allow us to increase our gross profit per call processed by reducing our billing costs through direct billing agreements with our major Local Exchange Carriers. It will also reduce our borrowing costs for receivable financing." This is the first time that Bell Atlantic has extended such a line of credit directly to a traffic originator such as VAC. Bell Atlantic's previous financings in this area had been to third party billing companies.
 Additional Equipment Financing
 In a second new financing development, one aimed at supporting the continuing installation of VAC's telecom transaction processing equipment, VAC announced $2 million in financing to be provided by Berthel Fisher & Company of Cedar Rapids, Iowa. VAC had recently borrowed $1 million of this amount.
 Allstate Convertible Debt Extended to 1996
 VAC also announced that its $2.5 million convertible note with Allstate Life Insurance Company and Allstate Insurance Company that was originally scheduled to mature on May 1, 1993 and had subsequently been extended, has been further extended to mature in October 1996. Dennis R. Casey, VAC's Chairman & CEO, stated, "We appreciate the vote of confidence that this extension represents. This extension will allow us to reclassify approximately $1.8 million of this obligation as long term debt and will further improve our working capital."
 Joint Technology Agreement with Intellicall
 In another Company development, VAC and Intellicall, Inc. (NYSE: ICL), of Carrollton, Texas, have agreed to cross license certain of each other's telecommunications technologies. The companies have agreed to jointly pursue licensing opportunities targeting other companies in the telecom industry. The agreement gives rise to joint opportunities for pursuing licensing revenues and also protects each company from claims by the other for existing and future telecom products.
 Value-Added Communications, Inc. of Dallas, is a telecommunications transaction processing company specializing in the processing of long distance calls, financial transactions and hotel reservations. VAC's customers are "host" locations and are primarily hotels and correctional facilities, but also include resorts, universities, hospitals, military bases, truck stops and pay telephones.
 -0- 11/2/93
 /CONTACT: Dennis Casey, Chairman & CEO or David Henkel, CFO, of Value-Added Communications, 214-447-6700, or Lawrence Rosenbloom or Gary Fishman of The Hudson Stone Group, 212-983-8550/
 (VACI ICL)


CO: Value-Added Communications, Inc.; Intellicall, Inc. ST: Texas IN: TLS SU: JVN FNC

LD -- NY006 -- 9480 11/02/93 08:06 EST
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Publication:PR Newswire
Date:Nov 2, 1993
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