June 13, 2007 — (WEB HOST INDUSTRY REVIEW) — Ethernet Internet service provider Cogent Communications (cogentco.com) announced on Monday the completion of its offering of $200 million aggregate principal amount of its 1.00 percent convertible subordinated notes due 2027. The notes were sold to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933.
Cogent says it used the net proceeds from the offering to pay the $50.0 million purchase price for approximately 1.78 million shares of its outstanding common stock it agreed to purchase in connection with the offering.
The company says it intends to use approximately $10.6 million of the net proceeds from the offering to pay off its existing 7.50 percent convertible subordinated notes, which reach maturity on June 15, and to use the remaining proceeds of this offering for general corporate purposes.
Last week, Cogent announced that its CEO Dave Schaeffer will present at the Bear Stearns 18th annual Technology/Communications/Internet Conference on June 12 at 3:40 p.m. EST.
