UTStarcom exchanges $40 million 0.875% convertibles for 1.56 million shares, cash

By Jennifer Chiou

New York, June 30 - UTStarcom, Inc. said it issued 1.56 million common shares in exchange for $40 million 0.875% convertible subordinated notes due 2008 in a private transaction, according to an 8-K filing with the Securities and Exchange Commission.

As an incentive, the holder also received $17 million in cash.

The company expects to record a gain of about $10.5 million to $11 million for the early extinguishment.

The Alameda, Calif.-based company manufactures IP-based products for telecommunications service providers.

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