Vonage Refinancing Eliminates Need for Public Ratings Leading Standard & Poor's to Withdraw Rating
HOLMDEL, N.J., Aug. 26, 2011 /PRNewswire/ -- Vonage Holdings Corp. (NYSE: VG) announced today that as a result of the full repayment of its $200 million institutional term loan on July 29, 2011, the ratings provided by Moody's and Standard and Poor's are no longer necessary. As a result, Standard & Poor's today announced the withdrawal of its rating on Vonage. This follows the rating withdrawal by Moody's on August 5, 2011. The discontinuance in ratings does not reflect a review by Standard & Poor's or Moody's of Vonage's financial strength or outlook.
The most recent refinancing was the result of consistently strong financial results and is the second successful refinancing in the last eight months. 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 facility which carried an 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., Best Buy, Kmart and Sears, 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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SOURCE Vonage
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