One.Tel yesterday announced it has issued a convertible note worth $5 million to an undisclosed private investor .
In a letter to the Australian Stock Exchange, One.Tel said the deal is based on terms of a 9 per cent coupon over three years with a strike price of $3.20.
Sandy Slessar, One.Tel's corporate investor relations director, rejected a suggestion the high strike price is an indication the investment is risky.
"The company is up-side and enormous," she said.
This latest deal follows an announcement by One.Tel last week it issued a $5 million convertible note to Dorigad Pty Ltd, a company "associated with Mr James Packer".
The two deals inject a total of $10 million into One.Tel coffers as it seeks to boost its international operations and prepare for a Nasdaq listing in 1999.