Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers T > Headlines for Tenders 2005 > News item |
UTStarcom investor converts $38 million notes into 1.482 million shares, cash
By Jennifer Chiou
New York, June 29 - UTStarcom issued 1.482 million shares of its common stock in exchange for $38 million of 0.875% convertible subordinated notes due 2008, according to an 8-K filing with the Securities and Exchange Commission.
As an incentive, the noteholder received $15,781,400 in cash in addition to the shares.
The company expects to record a gain of about $11.0 million to $11.5 million on the early extinguishment.
"We believe this transaction presents an attractive opportunity to retire debt at a significant discount, which will help to strengthen our balance sheet," said Mike Sophie, chief operating officer and interim chief financial officer, in a news release.
"In addition, we believe this demonstrates the company's commitment to supporting its equity holders."
The company added that further transactions to reduce debt are possible in the future.
Alameda, Calif.-based UTStarcom manufactures telecommunications equipment.
© 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.