WAYNE, Pa. –
May 10, 2004 – Internet Capital Group, Inc.
(Nasdaq: ICGE; “ICG”) announced today that
it has completed the previously announced
private placement of $60 million principal
amount of 5% convertible notes due April
2009 (the “Notes”). The Notes are
convertible into ICG common stock at a
conversion price of $9.108 per share (as
adjusted for the reverse stock split).
“This financing is testament to ICG’s
potential to build value. Now that this
transaction has closed, we can redeem the
remainder of our existing outstanding debt,
allowing us to further heighten our focus on
maximizing the success of our partner
companies by driving revenue and earnings
growth,” said Walter Buckley, chairman and
CEO of ICG. “A strengthened balance sheet
coupled with encouraging partner company
progress puts us in a solid position to
capitalize on the opportunities presented by
the growing e-business applications space.”
Having closed the transaction today, ICG
will use a portion of the net proceeds of
the private placement to redeem the
remaining $39.1 million of outstanding 5
1/2% convertible subordinated notes due
December 2004 (the “Existing Notes”). As
such, ICG today sent an irrevocable notice
of redemption to JP Morgan Trust Company,
Trustee of the Existing Notes announcing
that ICG will redeem such Existing Notes on
June 24, 2004. The remaining net proceeds
will be used for general working capital
purposes and for potential acquisitions in
new and existing partner companies.
Effectiveness of Reverse Stock Split
Separately, ICG announced that a
one-for-twenty reverse stock split became
effective as of the close of trading on
Friday, May 7, 2004. On a post-split basis,
ICG currently has 38,056,600 shares of
common stock outstanding. In order to
indicate the effect of the reverse split to
the investment community, Nasdaq will amend
the Company’s ticker symbol to “ICGED” for a
period of twenty trading days, commencing
today. After such time, the Company’s ticker
symbol will revert to “ICGE”.
About Internet Capital Group
Internet Capital Group (www.internetcapital.com)
is an e-business applications holding
company that builds, acquires, and owns
software and services businesses that
leverage the Internet to help organizations
operate more productively. Founded in 1996,
ICG devotes its expertise and capital to
maximizing the success of e-business
companies that take advantage of the
evolution to Internet architectures in key
business sectors.
