HOLMDEL, N.J., Feb. 13, 2013 /PRNewswire/ -- Vonage Holdings Corp. (NYSE: VG), a leading provider of communications services connecting people through cloud-connected devices worldwide, today announced results for the fourth quarter and full year ended December 31, 2012. In addition, the Company announced three noteworthy developments including a new $145 million credit facility; a new $100 million share repurchase authorization; and its international joint venture with Datora in Brazil
New Credit Facility
Capitalizing on the low interest rate environment and the Company's strong financial position, on February 11, 2013, Vonage entered into a new $145 million credit agreement to provide increased financial flexibility for investments in growth. The new debt agreement consists of a three-year, $70 million senior secured term loan bearing interest at LIBOR plus 3.125 percent and a $75 million revolving credit facility. The Company used $43 million of the proceeds of the term loan to retire all of the existing debt under its prior facility.
Share Repurchase Program
On February 7, 2013, Vonage's Board of Directors authorized a new $100 million share repurchase program to be concluded by the end of 2014. This new $100 million program replaces the Company's prior $50 million share repurchase program. As of February 12, 2013, Vonage had repurchased a total of 14 million shares of its common stock for $33 million under the prior repurchase program, including repurchases of 8 million shares of its common stock for $19 million during the fourth quarter and 12 million shares for $28 million for the full year 2012.
Joint Venture in Brazil with Datora
As highlighted in its press release this morning, Vonage has entered into an agreement to form a joint venture with Brazilian-based Datora Telecom to deliver communications services in Brazil. This is Vonage's second international partnership in less than one year, and follows the Company's partnership with Globe™ in the Philippines announced in May of 2012.
Brazil represents a substantial growth opportunity for Vonage, with 67 million total households, 17 million broadband households and more than one million expats. Founded in 1993, Datora is a diversified, licensed telecommunications provider focused on innovative voice and data solutions for carriers in Brazil and other countries around the world. Datora was the first company to operate VoIP services in Latin America, and the first telecom provider in Brazil to be issued a Mobile Virtual Network
Operator (MVNO) license. The company has a significant physical presence in Brazil, with points of presence in the country's most important economic centers, and more than 200 interconnection agreements with leading carriers in the countries where it does business.