IDT Corp, Hackensack, New Jersey discount router and reseller of international telecom services, has secured $13.5m in financing. The money came in the form of a private placement of $7.5m in 3% convertible debentures with a group of institutional investors, and a $6m line of credit from Transamerica Technology Finance. The first $7.5m is redeemable in IDT stock at a 25% premium to market price, and the $6m from Transamerica is a working capital credit line secured by IDT’s carrier receivable. The money will be used for expansion of the company’s global internet telephony network (CI No 3,236). Facilities in the US and the UK are already fully functional, and plans for additional mirror sites throughout Asia and Europe are planned for launch by the end of the year. The Company currently has operating agreements with over 20 carriers worldwide to both originate and terminate traffic, and is negotiating with additional worldwide carriers to reach similar agreements.
