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VTSS Investor Forum

Debt Convert

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Can someone enlighten us on the details?

Stock must trade at or above $4.50 for 30 consecutive days?
Does the 60M OS shares included in what would be distributed to call the debt?
Would save $8M a year in interest?

Thanks in advance.

Posted by jvincent - 9 years ago | Updated 9 years ago

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from the quarterly report on Feb 14, 2014

"The Term B Loan conversion terms are substantially similar to the conversion terms of the 2014 Debentures, as described below. At December 31, 2013 , conversion of the outstanding principal amount of the Term B Loan would result in the issuance of 1.9 million shares of common stock. We can elect to settle any conversion in stock, cash or a combination of stock and cash.

The Term A and B Loans are collateralized by substantially all of our assets.

Prepayment of the 2014 Debentures is permitted at 100% of the principal amount plus accrued and unpaid interest if the closing price of our common stock has been at least 130% of the conversion price in effect for at least 20 trading days during the 30 consecutive trading day period ending on the day prior to the date of notice of prepayment. At December 31, 2013 , conversion of the outstanding principal amount of the 2014 Debentures would result in the issuance of 7.3 million shares of common stock. We can elect to settle any conversion in stock, cash or a combination of stock and cash. The compound embedded derivative, which expired October 30, 2012, was comprised of the conversion option and a make-whole payment for foregone interest if the holder converted the debenture early."

Posted by GARIF - 9 years ago

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So it looks like the stock has to trade at and above $5.85 per share for 20 of 30 trading days before VTSS has the option of forcing conversion. We are a ways from that. But for the last little while at least it is headed in the right direction.

Posted by dlog - 9 years ago

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