UTStarcom gets needed consents for 0.875% convertibles

By Jennifer Chiou

New York, July 27 - UTStarcom, Inc. said it received consents from holders of more than 50% of its 0.875% convertible subordinated notes due 2008 at the 5 p.m. ET July 26 deadline.

The company said it entered intro a second supplemental indenture.

The company modified the terms of its solicitation on July 25 so that any waiver received would remain effective only through Oct. 15.

The Alameda, Calif., networking company was soliciting consents for a proposed waiver to any default that may have occurred due to its failure to file its financial statements with the Securities and Exchange Commission and the trustee on time.

The modified amendments also provided that, in addition to regularly scheduled interest payments, the notes will accrue special interest at a rate of 10% per year, which is an increase of 3.25% over the current rate of 6.75% per year.

Originally, the company was offering to increase the special interest rate to 9.25% per year.

The company needed consents from holders of a majority of notes.

As previously disclosed, UTStarcom has not yet filed with the SEC its 10-Q for the quarter ended Sept. 30, 2006, its 10-K for the fiscal year ended Dec. 31, 2006 and its 10-Q for the quarter ended March 31.

Global Bondholder Services Corp. (866 937-2200 or call collect 212 430-3774) was the information agent and tabulation agent. Citi (800 558-3745 or call collect 212 723-6106) was the solicitation agent.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.