UTStarcom adds time limit to requested waiver for 0.875% convertibles

By Angela McDaniels

Seattle, July 25 - UTStarcom, Inc. modified the terms of the consent solicitation for its 0.875% convertible subordinated notes due 2008 so that any waiver received would remain effective only through Oct. 15, according to a company news release.

The Alameda, Calif., networking company is soliciting consents for a proposed waiver to any default that may have occurred due to its failure to file its financial statements with the Securities and Exchange Commission and the trustee on time.

The modified amendments will also provide that, in addition to regularly scheduled interest payments, the notes will accrue special interest at a rate of 10% per year, which is an increase of 3.25% over the current rate of 6.75% per year.

Originally, the company was offering to increase the special interest rate to 9.25% per year.

The company needs consents from holders of a majority of notes.

The solicitation will expire at 5 p.m. ET on Thursday.

As previously disclosed, UTStarcom has not yet filed with the SEC its 10-Q for the quarter ended Sept. 30, 2006, its 10-K for the fiscal year ended Dec. 31, 2006 and its 10-Q for the quarter ended March 31.

Global Bondholder Services Corp. (866 937-2200 or call collect 212 430-3774) is the information agent and tabulation agent. Citi (800 558-3745 or call collect 212 723-6106) is the solicitation agent.

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