Mercury Interactive seeks waivers of default from holders of 4.75%, zero-coupon convertibles

By Angela McDaniels

Seattle, April 21 - Mercury Interactive Corp. is soliciting consents from the holders of its $300 million 4.75% convertible subordinated notes due 2007 and $500 million zero-coupon senior convertible notes due 2008, according to a company news release.

The consents would waive any default or event of default related to the company not filing its financial reports with the Securities and Exchange Commission and the trustee of the notes on time.

Mercury Interactive received a limited waiver through March 31 from its noteholders when it did not file its 10-Q report for the second or third quarters of 2005 on time, and because it did not file the reports prior to the expiration of the waiver, the trustee or the holders of 25% of each series of convertibles have the right to declare the bonds immediately due and payable.

Holders of the 4.75% convertibles who consent to the waiver will receive an option to put the convertibles back to the company on March 1, 2007 at a repurchase price of 101.3%.

Holders of the zero-coupon convertibles who consent will receive an option to put the convertibles back to the company on Oct. 31, 2006 at a repurchase price of 107.25%. This is in addition to the existing optional put date of Nov. 30, 2006.

The consent solicitations will expire at 5 p.m. ET on May 5, unless extended.

MacKenzie Partners Inc. (800 322-2885 or 212 929-5500) is tabulation agent for the consent solicitation. Mercury Interactive has also retained Chanin Capital Partners as a financial adviser for the consent process.

Holders of a majority of the convertibles have agreed in writing to consent, according to the release.

Mercury Interactive is restating its financial statements in connection with work done by the special committee of the board of directors regarding stock option matters and loans to some of the company's officers, according to an earlier news release.

The company said it expects to complete its restated financial statements and file its amended 10-K report for 2004 and 10-Q report for the first quarter of 2005 in the second quarter of 2006 and to file all other required SEC filings, including its 10-K report for the period ended Dec. 31, in a timely fashion thereafter.

Mercury Interactive is an enterprise software company based in Mountain View, Calif.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.