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| Subex seeks to extend maturity of existing FCCBs |
| BS Reporter / Mumbai Feb 06, 2012, 19:52 IST |
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Subex, a global provider of business support systems for communications service providers (CSPs), said that it was extending the maturity date of its outstanding foreign currency convertible bonds (FCCBs). The proposal is subject to approval from the Reserve Bank of India and its bondholders.
Subex has an outstanding FCCBs worth $94 million. These bonds mature from March 9, 2012. The company is seeking an extension of the maturity of FCCBs to July 9, 2012. The total outstanding redemption will be around $131 million, including the premium of the bonds.
"The restructuring plan being explored cannot be implemented within the next 30 days when the bonds will become due. Hence, the plan to seek a short extension to ensure that we have adequate time to execute the plan," said Subash Menon, founder chairman, managing director and CEO, Subex.
"We are quite confident of arriving at a long-term solution to address the FCCBs with the active support of the bondholders," he added.
In 2007, Subex had issued FCCBs worth $180 million to fund a buyout. The bonds, at that time, were convertible at Rs 656 a share in March 2012.
The shares of the company closed nearly 1% down at Rs 32 on the BSE today.
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