Worldspace Gets Deal To Defer Debt Payment
July 1, 2008 at 7:46 AM (PT)
WORLDSPACE SATELLITE RADIO strikes a deal with the four creditors holding its bridge loan notes and convertible notes to let it defer paying the $19.86 million in principal amount until JULY 9th. The payment was originally due MONDAY (6/30). In the deal, each of the note holders will receive a pro rata portion of an aggregate of 1.5 million new company warrants exercisable for shares of the Class A Common Stock of the company, exercisable at $1.55 per share for a 5 year period from the date of issuance.
WORLDSPACE has also granted registration rights reasonably acceptable to the holders for the shares underlying these new warrants, which will have identical terms to the warrants that were issued to the holders on JUNE 13, 2008 in connection with the previously announced deferral agreement. Interest continues to accrue on all of the holders' existing bridge loan notes and convertible notes until paid in full.