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HealthAxis Trades Stock For Debt

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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%.