Norway's Funcom seeks OK to slash coupon in half on 10% convertibles

By Susanna Moon

Chicago, April 4 - Funcom NV will hold a meeting on April 25 to seek approval for amending its 10% senior convertible bonds due 2014 and extending the maturity by one year.

The company will ask bondholders to slash the coupon in half to 5%, effective April 25, with interest payable in cash or in shares at the revised conversion rate.

The conversion price would be cut to $0.37 from $1.37, according to a notice by bond trustee Norsk Tillitsmann ASA.

The maturity would be pushed out by one year to Dec. 22, 2015, from Dec. 22, 2014.

The proposed changes will give a more "reasonable conversion price incentive given current share price levels" of $0.30 per share, the release noted.

The changes also would provide "cash relief" for the company to complete its restructuring and to secure working capital for the development, promotion and launch of its online multiplayer game as well as for other projects.

The convertibles were issued in 2011.

Funcom is based in Oslo and develops computer and console video games.

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