Vonage Announces Refinancing Eliminates Need for Public Ratings; Standard & Poor's to Withdraw Rating

Vonage Holdings Corp. VG announced today that as a result of the full repayment of its $200 million institutional term loan on July 29, 2011, the ratings provided by Moody's and Standard and Poor's are no longer necessary. As a result, Standard & Poor's today announced the withdrawal of its rating on Vonage. This follows the rating withdrawal by Moody's on August 5, 2011. The discontinuance in ratings does not reflect a review by Standard & Poor's or Moody's of Vonage's financial strength or outlook. The most recent refinancing was the result of consistently strong financial results and is the second successful refinancing in the last eight months. On July 29, 2011, the Company completed the refinancing of its term loan, entering into a $120 million credit facility including an $85 million, three-year loan and a $35 million revolver bearing interest at LIBOR plus 3.5%. This debt replaces the prior facility which carried an interest of LIBOR plus 8% with a 1.75% LIBOR floor. This new facility provided by a group of commercial banks led by JP Morgan results in annual interest expense savings of approximately $43 million from 2010.