Ptek Holdings (Nasdaq: PTEK) says it has closed the unregistered offering of $75 million of 5 percent convertible subordinated notes due 2008, to qualified institutional buyers.

Cash interest is payable on the notes on Feb. 15 and Aug. 15 of each year.

Ptek, a provider of business communications services, has granted the initial purchasers of the notes a 30-day option to purchase up to an additional $10 million principal amount of the notes.

The company intends to use the net proceeds from the offering, which are expected to be approximately $71.9 million ($81.7 million if the initial purchasers’ option is exercised in full), to repurchase in the open market or redeem a portion of its existing 5.75 percent convertible subordinated notes due 2004.