Subex seeks written OK from holders of 5% convertibles to incur debt

By Susanna Moon

Chicago, Jan. 19 - Subex Ltd. said it is seeking written approval from the holders of its $98.7 million of 5% convertible unsecured bonds due March 9, 2012 to incur additional debt.

The company is considering raising up to $135 million of debt to repay the bonds at maturity, which would push the company's debt level over the maximum allowed under the bond covenants, according to a company press release on Jan. 16.

Proceeds also would be used to repay other debt.

The company said it waived all notice of time, place and purpose of a physical meeting.

In order for the measure to pass by written resolution, the company must get written consents from holders of at least 51% of the notes.

Holders may vote on the resolution from Jan. 16 to Jan. 25.

For more information, fax the Bank of New York Mellon at +44 20 7964 4637, attn: trustee administration manager.

There is $54.8 million of the bonds outstanding.

Subex provides operations support systems and is based in Bangalore, India.

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