Intentia says convertible tender fully subscribed, terms to be amended

New York, Dec. 13 - Intentia International AB said holders fully subscribed its offer to convert up to 40% of its outstanding subordinated convertible notes into shares. As part of the offer, terms on the remaining notes will be amended, lowering the conversion price, extending the maturity and adding a contingent call.

The Stockholm, Sweden collaboration solutions company said holders of 97% by value of the notes accepted the offer to convert.

Intentia currently has €100 million outstanding of the 5% convertible subordinated notes due 2004.

The amendments will change the securities that remain outstanding after the 40% conversion by lowering the conversion price to SEK 130 from SEK 244.48, extend the maturity to July 15, 2006 from July 15, 2004 and add a provision allowing Intentia to call the securities for conversion if the stock trades at 108% of the conversion price for 20 business days.

Intentia said the changes "significantly strengthen" its position, increasing the equity to total assets ratio by 10 percentage points to 23%, decreasing debt and reducing interest costs. At current exchange rates, annual borrowing costs will be SEK 18 million lower, Intentia said.

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