Riverstone buys back $28 M in debt

By siliconindia   |   Thursday, 07 November 2002, 20:30 IST
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Riverstone Networks, Thursday announced it has improved the company's balance sheet by completing the repurchase of $28 M of its outstanding convertible subordinated notes at a net gain of more than $10 M.

SANTA CLARA: Romulous Pereira led Riverstone Networks, Inc. (Nasdaq:RSTN), a pioneer in metropolitan area networking, Thursday announced it has significantly improved the company's balance sheet by completing the repurchase of $28 million in face value of its outstanding convertible subordinated notes at a net gain of more than $10 million. The Santa Clara, California based company, which recently booked a quarterly loss amid an 80 percent decline in revenue, said the debt repurchase would increase its financial flexibility and help it pursue more business opportunities. "This reduction in Riverstone's debt helps to provide more flexibility and more business opportunities for the company," said Robert Stanton, CFO, Riverstone Networks. "With an even stronger balance sheet with reduced debt, and a tight focus on operating expenses, Riverstone remains in a position to lead metropolitan area networking across all major geographies." The notes are unsecured obligations, convertible into Riverstone common stock at a conversion price of approximately $18.16 per share. The placement of $175 million in face value of the notes closed on November 21, 2001.