Subex receives holder approval to extend maturity of 2% convertibles

By Toni Weeks

San Diego, July 5 - Subex Ltd. announced it received approval at a July 5 meeting in Singapore from holders of its $39 million of outstanding 2% convertible bonds to prolong the maturity date by five years to March 9, 2017.

As previously reported, the company was seeking approval to extend the maturity date and amend the definition of the conversion period in the trust deed to extend that period to Jan. 29, 2017.

In addition, the modification stated that the bonds would continue to pay 2% interest but would be redeemed at 136.04% of par at maturity.

Holders were also asked to agree to Subex's incurrence of new debt and to waive any and all existing events of default under the trust deed.

According to a previous company filing with the London Stock Exchange, one condition to the second supplemental trust deed is for confirmation to have been received from the Bank of New York Mellon as trustee for Subex's $98.7 million of 5% convertible unsecured bonds due 2012 that the holders of those bonds passed an extraordinary resolution.

In March, the company received approval to extend the maturity date of the 2% bonds to July 9, 2012 from March 9, 2012.

On Feb. 27, Subex said it was working on a complete restructuring of the convertibles with the existing bondholders. The plan was expected to be completed in three to four months in two steps. The first step was the extension of the maturity date. The second step is expected to result in some of the bonds being converted to equity.

The filing stated that Subex's restructuring plan provides an incentive for holders of the 2% and 5% bonds to exchange their securities for new bonds with a lower conversion price.

The approval required a quorum of two or more holders of at least 75% of the 2% bonds to be present at the meeting.

Subex provides business support systems for communications service providers and is based in Bangalore, India. It originally issued $180 million of the 2% convertibles.

© 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.