September 30, 2004 — (WEB HOST INDUSTRY REVIEW) — Internet exchange operator Terremark Worldwide Inc. (terremark.com) said on Thursday that the company’s Chairman and CEO has repaid his outstanding $5 million loan from the company by tendering Terremark approximately 7.7 million shares of Terremark common stock.
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Following the transaction, Medina owns 36.9 million shares of Terremark common stock, approximately 10 percent of the company’s currently outstanding shares. Terremark says the 7.7 million shares tendered by Medina will be retired and will reduce the total shares outstanding.
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As a result of the securities law changes brought about by the Sarbanes-Oxley Act of 2002, says Terremark, the company was prohibited from extending, amending or modifying the note receivable from Medina.
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Terremark made the loan to Medina in September of 2001, when he agreed to repay his indebtedness to Ocean Bank earlier than required and personally guaranteed the company’s $48 million credit facility with Ocean Bank.
