The lenders under the first and second lien senior facility and the purchasers of the convertible notes are listed as Silver Point Finance, LLC and certain affiliates, as well as other third party lenders and affiliates of Vonage.

Vonage will use the net proceeds of the financing along with its own cash on hand to repurchase up to $253.5 million of the company's existing convertible notes in a tender offer commenced on July 30, 2008. Vonage will have to hold a special shareholder meeting with a vote to approve this measure along with the potential issuance of shares of common stock upon the conversion of the convertible notes.

The company noted that it has already obtained binding agreements from stockholders in aggregate to obtain approval, but a special meeting of stockholders is set for November 3. This is the lifeblood that shareholders were hoping would come to fruition. Shares are responding as well this morning. Friday's close was $0.82 and the first indications are up almost 30% on very thin volume. Where this ultimately trades today may depend more on the attention given to other low-priced active stocks. Its 52-week trading range is $0.57 to $2.70.

Source: 24/7 Wall St.