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Vonage Secures Financing

7/25/2008 11:59:00 AM Eastern

Holmdel, N.J. — VoIP provider Vonage said it had secured financing that it would use against its existing convertible notes, which could be put to the company this December.

Vonage’s financial lifeline comes courtesy of Silver Point Finance. According to Vonage, Silver Point established terms and conditions for up to $215 million in private debt financing for the VoIP firm, of which Silver Point would kick in $125. To secure the financing, Vonage will have to find other lenders willing to pony up $60 million, among other conditions.

Should Vonage clear the hurdle, it will use the net proceeds and its cash-on-hand to repurchase the convertible notes that are currently hanging over its head to the tune of $253 million.