SR Telecom holders convert $1.9 million 10% convertibles ahead of redemption

By Angela McDaniels

Seattle, March 6 - SR Telecom Inc. said holders of $1,906,863 of the company's 10% secured convertible debentures due 2011 converted their debentures into 13,181,651 common shares at $0.15 each after the company called the debentures on Feb. 14.

The company redeemed the remaining $743,509 outstanding debentures on Tuesday at par plus accrued interest, which equalled $38.63 per $1,000 principal amount of debentures.

In total, $2,650,372 of the debentures were redeemed or converted. The company issued $75,539,018 of the debentures in August 2005.

The transaction simplified SR Telecom's financial structure through the elimination of second-ranking secured creditors and freed up $4.7 million in restricted cash on its balance sheet, according to a company news release.

SR Telecom is a Montreal-based wireless data equipment company.

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