Published: August 05, 2011
Vonage Refinancing Eliminates Need for Public Ratings
HOLMDEL, N.J., Aug. 5, 2011 /PRNewswire/ -- Vonage Holdings Corp. (NYSE: VG) announced today that as a result of the full repayment of its institutional term loan last week, the ratings provided by Moody's and Standard and Poor's are no longer necessary. The most recent refinancing was the result of consistently strong financial results and is the second successful refinancing in the last eight months.
Given that public ratings are no longer necessary, Moody's announced that it has withdrawn the ratings assigned to Vonage Holdings Corp. The discontinuance in ratings does not reflect a review by Moody's of Vonage's financial strength or outlook.
On July 29, 2011, the Company completed the refinancing of its term loan, entering into a $120 million credit facility including an $85 million, three-year loan and a $35 million revolver bearing interest at LIBOR plus 3.5%. This debt replaces the prior $200 million facility which carried interest of LIBOR plus 8% with a 1.75% LIBOR floor. This new facility provided by a group of commercial banks led by JP Morgan results in annual interest expense savings of approximately $43 million from 2010.
About Vonage
Vonage (NYSE: VG) is a leading provider of low-cost communications services connecting individuals through broadband devices worldwide. Our technology serves approximately 2.4 million subscribers. We provide feature-rich, affordable communication solutions that offer flexibility, portability and ease-of-use. Our Vonage World plan offers unlimited calling to more than 60 countries with popular features like call waiting, call forwarding and voicemail -- for one low monthly rate. Vonage's service is sold on the web and through regional and national retailers including Wal-Mart Stores Inc. and is available to customers in the U.S. (www.vonage.com), Canada (www.vonage.ca) and the United Kingdom (www.vonage.co.uk).
Vonage Holdings Corp. is headquartered in Holmdel, New Jersey. Vonage® is a registered trademark of Vonage Marketing Inc., a subsidiary of Vonage Holdings Corp.
To follow Vonage on Twitter, please visit www.twitter.com/vonage_voice. To become a fan on Facebook, go to www.facebook.com/vonage.
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About Vonage
Vonage (NYSE: VG) is a leading provider of communications services connecting individuals through broadband devices worldwide. Our technology serves approximately 2.4 million subscribers. We provide feature-rich, affordable communication solutions that offer flexibility, portability and ease-of-use.
Our Vonage World plan offers unlimited calling to more than 60 countries with popular features like call waiting, call forwarding and voicemail -- for one low, flat monthly rate.
Vonage's service is sold on the web and through regional and national retailers including Wal-Mart Stores Inc. and is available to customers in the U.S., Canada and the United Kingdom. For more information about Vonage's products and services, please visit http://www.vonage.com.
Vonage Holdings Corp. is headquartered in Holmdel, New Jersey. Vonage® is a registered trademark of Vonage Marketing Inc., a subsidiary of Vonage Holdings Corp.
SOURCE Vonage Holdings Corp.
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