Vonage Predicts Debt Deal by November

Vonage Holdings Corp. (VG) still is working to refinance its $253 million in debt, a David-vs.-Goliath challenge as the stock market keeps falling and the credit marks dries up.

The New Jersey-based VoIP provider said this week it has agreed to new terms with financier Silver Point Finance LLC. But the projected amount falls short of Vonage’s full debt load. Silver Point so far is agreeing to fund $220.3 million, and at different interest rates than agreed upon in July. The percentages weren’t disclosed, but in this climate it seems fair to speculate that the rates are higher than originally negotiated.

The deal has yet to close. If all goes as planned, Silver Point and Vonage will shake hands in November.

“We continue to work diligently to complete the refinancing of our convertible notes and are encouraged by our progress to date,” said John Rego, Vonage CFO. “We believe the updated structure we are announcing ... will provide the necessary funding to operate our business for the foreseeable future.”