iBasis to exchange $12.2 million 5.75% convertibles

New York, May 29 - iBasis, Inc. said it received commitments from a group of noteholders to exchange $12.2 million of its 5.75% convertible subordinated notes due 2005.

Of the total, $11.8 million were retired Thursday, the Burlington, Mass. telecommunications company said.

In exchange for the convertibles, the noteholders will receive $6.1 million principal amount of new 11.5% senior secured notes and five-year warrants to buy 1,116,605 shares of iBasis common stock at an initial exercise price of $0.65 per share. The new notes mature Jan. 15, 2005.

Following the exchange, iBasis said it will have $38.2 million of the convertibles outstanding, down from the original $150 million.

PMI completes consent solicitation

New York, May 29 - The PMI Group, Inc. said it successfully completed its consent solicitation to amend the indenture for its 2.5% senior convertible debentures due 2021.

The Walnut Creek, Calif. company said that holders of more than 50% of the outstanding convertibles consent to the amendment.

The solicitation expired at 5.00 p.m. ET on May 28.

As previously announced, PMI had been seeking to amend the convertibles' indenture to exclude Fairbanks Capital Holding Corp. and Fairbanks' subsidiaries from the definition of "designated subsidiary."

The amendment also increases the percentage of the company's total assets on a consolidated basis to 25% from 15% that a subsidiary would be required to represent to constitute a designated subsidiary.

In addition, the amendment provides that in the case of any subsidiary of the company that is not accounted for as a consolidated entity in the company's consolidated financial statements in accordance with generally accepted accounting principles in the U.S., only the company's proportionate share of the assets of such subsidiary shall be counted for purposes of this asset test.

As of March 31, 2003, the company had no subsidiaries that constituted designated subsidiaries as a result of the existing asset test. However, Fairbanks constituted a designated subsidiary as of Feb. 28, 2003 as a result of that asset test.

As a result of the amendment, any failure to pay indebtedness at maturity or a default on debt by Fairbanks or any of its subsidiaries does not constitute events of default under the indenture. In addition, events of bankruptcy, insolvency or reorganization with respect to Fairbanks or any of its subsidiaries do not result in an event of default under the indenture.

PMI paid a consent fee of $5.00 per $1,000 principal amount of debentures.

Banc of America Securities LLC (212 933-2200 or 888 583-8900 ext. 2200) wass solicitation agent for the consent solicitation and the information agent is Georgeson Shareholder Communications Inc. (212 440-9800 or 800 813-3797).

Harken buys back, exchanges $6.78 million 5% convertibles

New York, May 29 - Harken Energy Corp. said it repurchased or exchanged $6.78 million principal amount of its 5% senior convertible notes for cash or new notes.

As a result of the transactions, the Houston oil and gas production company said it has $7.33 million of the convertibles still outstanding.

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