Press Release Archive
Ptek Holdings Completes Purchase Of Debt And Equity Interest In Easylink Services Corporation From AT&T Corp
Ptek Obtains $10.975M Secured Note and 1.424M Shares of Easylink Class A Common Stock; Easylink Agrees to Dismiss Lawsuit Against Ptek
Oct 21, 2003
ATLANTA, GA, October 21, 2003 - Ptek Holdings, Inc. (NASDAQ: PTEK), a leading provider of business communications services, today announced that it completed the purchase of a 12% secured promissory note in the principal amount of $10,975,082 issued by Easylink Services Corporation (NASDAQ: EASY) and 1,423,980 shares of Easylink Class A common stock from AT&T Corp. (NYSE: T). In exchange for the note and shares, Ptek paid AT&T $1,894,606 in cash and issued to AT&T a seven year warrant to purchase 250,000 shares of Ptek common stock at $9.36 per share.
In connection with the sale, Ptek agreed to amend the payment schedule of the note, as follows: Ptek is entitled to receive total payments of $13,745,846, consisting of 10 quarterly payments of $800,000 commencing December 1, 2003, and a balloon payment of $5,745,846 on June 1, 2006. The note is secured by a first lien on the assets of the Easylink business acquired by Easylink from AT&T.
In addition, Easylink agreed to dismiss its pending lawsuit against Ptek and has released the Company from the claims in the lawsuit.
"We are pleased to have completed the purchase of the Easylink note and shares from AT&T, as it provides us a solid investment opportunity" said Boland T. Jones, Founder, Chairman and Chief Executive Officer of Ptek Holdings, Inc.
About Ptek Holdings, Inc.
Ptek Holdings, Inc. is a leading provider of innovative business, data and group communications services for global enterprises. Companies use our audio and data conferencing solutions to conduct group meetings and presentations over the phone or Web. We also enable our customers to process and deliver large quantities of individualized, business critical information, such as electronic statements and invoices, financial transaction and travel confirmations, and drug prescriptions, via our global ASP platform. Ptek serves companies in nearly every business sector, including healthcare, technology, publishing, financial services, travel and hospitality. Our services are marketed under the Premiere Conferencing and Xpedite® brand names.
Ptek Holdings' corporate headquarters is located at 3399 Peachtree Road NE, Suite 700, Atlanta, GA 30326. Additional information can be found at www.ptek.com.
Forward-looking and cautionary statements
Statements made in this press release, other than those concerning historical information, should be considered forward-looking and subject to various risks and uncertainties. Such forward-looking statements are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 and are made based on management's current expectations or beliefs as well as assumptions made by, and information currently available to, management. A variety of factors could cause actual results to differ materially from those anticipated in Ptek's forward-looking statements, including, but not limited to, the following factors: technological change; the development of alternatives to our services; our ability to manage our growth; integration of acquired companies; possible adverse effects on our financial condition if we are unable to retain IBM as a customer at the levels currently forecasted; possible adverse results of pending or future litigation or infringement claims; service interruptions; competitive pressures, including pricing pressures; general domestic and international economic, business or political conditions; legislative or regulatory changes; increased financial leverage; our dependence on our subsidiaries for cash flow; and other factors described from time to time in our press releases, reports and other filings with the SEC, including but not limited the "Risk Factors Affecting Future Performance" section of our Annual Report on Form 10-K for the year ended December 31, 2003. All forward-looking statements attributable to us or a person acting on our behalf are expressly qualified in their entirety by this cautionary statement.