NU Online News Service, Aug. 1, 10:45 a.m. – Healthaxis Inc., Irving, Texas, says it has eliminated $27.5 million of long-term debt by trading preferred stock for debt securities called debentures.
HealthAxis extinguished the debentures by paying the holders $4 million in cash and giving them preferred shares that can be converted into common stock for $2.625 per share, HealthAxis says.
The preferred stock is supposed to pay a fixed, annual dividend rate of 2%.
