UTStarcom exchanges $31.9 million 0.875% convertibles for 1.24 million shares, cash

By Jennifer Chiou

New York, Sept. 14 - UTStarcom, Inc. said it issued 1,244,100 shares in exchange for $31.9 million of its 0.875% convertible subordinated notes due 2008, according to an 8-K filing with the Securities and Exchange Commission.

As an incentive, UTStarcom said it also paid the noteholders $15,570,490 in cash.

The company completed the privately negotiated exchanges on Sept. 6 and Sept. 13 and said it expects to record a gain on the early extinguishments of $6.2 million.

The Alameda, Calif.-based company manufactures IP-based products for telecommunications service providers.

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