Subex to issue $127.72 million new 5.7% convertibles in exchange offer

By Marisa Wong

Madison, Wis., July 9 - Subex Ltd. announced that it accepted for exchange $53.4 million of its 5% convertible bonds and $38 million of its 2% convertible bonds under an exchange offer.

The exchange offer is part of Subex's restructuring plan that was approved at two separate July 5 meetings for holders of the 5% bonds and holders of the 2% bonds.

The company said it will issue $127,721,000 of new 5.7% convertible bonds due 2017 in exchange for the old bonds.

Of the new bonds, $36,321,000 principal amount will be mandatorily converted at a conversion price of Rs. 22.79. Upon mandatory conversion of the affected bonds, 89,335,462 new shares of Subex stock will be issued.

Listing of the new bonds is expected to become effective July 11.

Subex originally issued $98.7 million of the 5% bonds and $180 million of the 2% bonds. As of July 5, the outstanding principal amounts of the 5% bonds and the 2% bonds were $54.8 million and $39 million, respectively.

As previously reported, the first step of the restructuring plan has already been completed. The maturities of both series of bonds were extended to 2017 from 2012.

Subex provides business support systems for communications service providers and is based in Bangalore, India.

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