Subex rolls over USD 128 m-FCCBs to July 2017

The leading global provider of business support systems for communications service providers Subex on Monday said it exchanged USD 127.72 million of foreign currency convertible bonds (FCCBs) after 97% of bond-holders approved the same.

"We have issued new secured bonds worth USD 127.72 million with a maturity period due July 2017 with a conversion price of Rs 22.79 per share, offering a coupon of 5.70%, of which bonds worth USD 36.321 million will be mandatorily converted into equity shares at the aforesaid conversion price of Rs 22.79 per share," the Bangalore-based firm said in a statement.

Also, the maturity period of the un-exchanged existing bonds worth USD 3.40 million now stands extended to March 2017, the statement added.

On the development, company founder, managing director and chief executive Subash Menon said, "I am pleased to state that we have successfully concluded the FCCBs exchange offer thereby putting all concerns about the financial stability of the company to rest. With the increasing traction for our industry-leading revenue operations centre and managed services offering and the non-linearity in the business, we are confident of better times ahead," he further said.

The statement further said that Menon had last week stepped down as chairman to enable the company to be in compliance with the listing agreements and will continue to spearhead the company in the capacity of managing director and chief executive.

Following this, Surjeet Singh and Karthikeyan Muthuswamy have joined the Subex board as additional directors, being nominees of the holders of the new bond-holders. With this, the board now has six members, including Anil Singhvi, Sanjeev Aga, Subash Menon and Sudeesh Yezhuvath, the company said.

Subex pioneered the concept of a revenue operations centre, which is a centralised approach that sustains profitable growth and financial health through coordinated operational control.

Its clients include 28 of top 50 telecom operators and 33 of the world's 50 biggest telcos worldwide. Its has over 300 installations across 70 countries, the company statement
said.