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InterCloud Systems Eliminates over $15 Million of Subordinated Convertible Debt and Accrued Interest in Debt to Equity Exchange
InterCloud Systems Eliminates over $15 Million of Subordinated Convertible Debt and Accrued Interest in Debt to Equity Exchange.
About this update from Intercloud Systems Inc
[{"type":"text","content":"\n\n SHREWSBURY, N.J., Nov. 17, 2017 (GLOBE NEWSWIRE) -- InterCloud Systems, Inc. (OTC:ICLD)  (“InterCloud” or \"Company\") announced today that it entered into an Exchange Agreement (the \"Agreement\") with the holders of certain term notes issued by the Company, exchanging the debt for preferred equity. \n Pursuant to the Agreement with these subordinated convertible note holders, the Company exchanged over $10.4 million of Convertible Debt and eliminated over $4.7 million of accrued interest in exchange for approximately $15.1 million of Preferred Equity.  The Preferred Equity may be exchanged for Common Stock over a five (5) year period.   The Company is also negotiating with other convertible noteholders to exchange their debt into preferred equity.  The effect of the Agreement is to eliminate all debt service and interest accrual on the debt and create $15.1 Million of new Shareholder Equity in the process. The Exchange immediately increased the Company’s common book value per share.  Full details of the impact on the Company’s financials will be discussed in the Company’s regularly scheduled quarterly earnings release.  InterCloud Systems CEO, Mark Munro stated, “This is our first step in creating new shareholder equity as we push forward with our plans to eliminate costly subordinated debt and interest accruals. Our goal is to continue to restructure all debt and create an entity with no debt. We can then focus on rebuilding shareholder value through revenue growth and profitability. This was a major step in the right direction.” About InterCloud Systems, Inc. InterCloud Systems, Inc. is a leading provider of cloud networking orchestration and automation, for Software Defined Networking (SDN) and Network Function Virtualization (NFV) cloud environments to the telecommunications service provider (carrier) and corporate enterprise markets through cloud solutions and professional services. InterCloud's cloud solutions offer enterprise and service-provider customers the opportunity to adopt an operational expense model by outsourcing cloud deployment and management to InterCloud rather than the capital expense model that has dominated in recent decades in IT infrastructure management. Additional information regarding InterCloud may be foun...