TranSwitch swaps 1.5 million shares for $24.6 million 5.45% Plus Cash notes

By Angela McDaniels

Seattle, Feb. 1 - TranSwitch Corp. exchanged 1.5 million shares of common stock for $24.6 million of the company's 5.45% Plus Cash notes due 2007 held by JMG Triton Offshore Fund Ltd. and JMG Capital Partners LP on Friday, according to an 8-K report filed with the Securities and Exchange Commission.

The company now has $30.2 million of the Plus Cash notes outstanding.

TranSwitch will recognize a debt extinguishment loss in the first quarter of 2006 of roughly $3.1 million associated with this exchange, according to the filing.

This transaction will also reduce the fair value of the company's outstanding derivative liability associated with the Plus Cash notes by about $2.7 million, which the company will recognize as other income in the first quarter of 2006.

Shelton, Conn.-based TranSwitch designs, develops and markets semiconductors for voice, data and video communications.

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