Vitesse Semiconductor starts consent solicitation for 1.5% convertibles

By Jennifer Chiou

New York, Sept. 5 - Vitesse Semiconductor Corp. began a consent solicitation for all of its $96.7 million of 1.5% convertible subordinated debentures due 2024, according to an 8-K filing with the Securities and Exchange Commission.

Vitesse is looking to amend the indenture to:

• Rescind and annul the previous asserted acceleration of the debentures and any connected events of default;

• Provide that the company's failure to file its required reports with the SEC will not be a default or event of default prior to the earlier of the date on which it has filed all its required reports with the SEC for a period of 12 consecutive months and Dec. 31, 2012; and

• Increase the interest payable at the Oct. 1 interest payment date only by $20 per $1,000 principal amount.

The consent solicitation will expire at 5 p.m. ET on Sept. 19.

The company said that holders of a majority of notes have agreed to execute consents.

As already reported, on June 5, the company said it received notice from U.S. Bank NA, indenture trustee for the debentures, of indenture compliance deficiencies for failure to file its annual reports with the trustee within 15 days of filing the reports with the SEC.

Vitesse is a Camarillo, Calif.-based designer, developer and marketer of semiconductor services for communications and storage networks.

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