EasyLink Services inserts amendments into Securities Purchase Agreement

EasyLink Services International Corporation announced introduction of Fourth Amendment to the Securities Purchase Agreement with York Capital Management and its certain affiliates. 

Following are the issues appropriate to the Fourth Amendment: 
$12 million paid by EasyLink and 100% applied to the principal on certain outstanding notes held by York without acquiring the prepayment of 25% penalty as specified by the notes;
York has agreed to abstain from the excess cash sweep of about $2.2 million offered by EasyLink for its first fiscal quarter ended October 31, 2008;
York has agreed to delay the application of Section 4.14(a) of the Agreement to EasyLink before the latter's fiscal quarter ending July 31, 2009;
In case EasyLink is able to secure alternate financing on acceptable terms, York would agree to relinquish the 25% prepayment penalty with respect to the additional prepayment of $30 to $35 million from certain notes held by it. 

Thomas J. Stallings, EasyLink chief executive officer stated the company was delighted from the opportunity to retire its debt earlier than was called for in the original agreement. "Although this payment reduces our current cash balance, we will realize substantial cash savings over the life of these outstanding notes," he added.

Source: EasyLink Services International Corporation