July 23, 2002 -- Terremark Worldwide, Inc. said today it will raise $10.2 million through the sale of common stock to TD Global Finance, a unit of Toronto Dominion Bank.
The Internet infrastructure company, which operates the NAP of the Americas in Miami, will issue 17.6 million new shares at 58 cents a share under terms of the agreement. The additional shares have been registered with the Securities and Exchange Commission. Terremark will receive the $10.2 million when the registration becomes effective.
As part of the agreement, TD Global Finance will have the right to purchase another 3.5 million shares within the next six months at an average price of 67 cents per share.
In early trading today, shares of Terremark were priced at 58 cents, down 6 cents on the session.
Last week Terremark announced that it had renegotiated a $48 million bank loan, gaining a lower interest rate and a longer payment window. Ocean Bank agreed to amend its credit facility, dropping the interest rate from 9.25 to 7.5 percent and giving Terremark the ability to extend the maturity date to as late as September 2004.
Terremark lost $57.4 million in the year ending March 31, with a consolidated operating (EBITDA) loss of $5.4 million for the most recent quarter, compared to $6.6 million for the quarter ended Dec. 31, 2001. Revenue from the NAP of the Americas was $2.0 million for the quarter ended March 31, up from $700,000 for the previous quarter.
The NAP of the Americas is a Tier 1 network access point housed in the 750,000 square foot Technology Center of the Americas (TECOTA) in downtown Miami.