- Debt-to-Equity Conversion Is Part of Previously Announced Recapitalisation Plan
Florham Park, N.J., Tuesday, 28 August 2007 - Global Crossing (NASDAQ: GLBC), a leading global IP solutions provider, today announced that STT Crossing Ltd, a subsidiary of Singapore Technologies Telemedia Pte Ltd, on Monday, 27 August 2007 increased its equity and voting interests in Global Crossing to 66.2 percent, based on the number of shares outstanding as of 1 August 2007.
STT Crossing converted $250 million original principal amount of mandatorily convertible notes due December 2008 into approximately 16.58 million shares of common stock. The shares included 8,806,431 warrants, which were immediately converted into common stock. STT Crossing had previously received $7.5 million in cash as part of the transaction.
The conversion is part of a recapitalisation plan that Global Crossing announced in May, related to its establishment of a five-year, $350 million secured term loan facility. Under the loan facility, the company is also required to put in place a collateral package by 30 August 2007 or such later date determined by the administrative agent in its reasonable discretion. The administrative agent has determined to extend such date to 12 September 2007.