New Delhi: Indian telecommunication software products provider Subex Ltd Wednesday said the Reserve Bank of India (RBI) has approved the restructuring proposal of its outstanding foreign currency convertible bonds (FCCBs), involving a combination of debt and equity.
The company is now looking to float a cashless exchange offer wherein the current FCCBs will be exchanged for new FCCBs with a maturity period of 5 years and fresh equity, Subex said in a filing to the stock exchanges.
"We are happy that RBI has given us approval to complete the restructuring of FCCBs. This restructuring proposal has been formulated with the active support of our existing bondholders whom we have been closely working with," its Founder Chairman, Managing Director and Chief Executive Officer Subash Menon said in a statement.
The company expects to complete the restructuring process within the next two months.
"We are confident that with their continued support, we will be able to complete the restructuring in the next 45-60 days," he added.
Earlier February, the RBI had approved extension of maturity period of the company's outstanding FCCBs, worth $94 million, to July 9, 2012, from March 9, 2012.
Subex has two tranches of FCCBs with a total redemption value of $131 million.
In 2007, Subex issued FCCBs worth $180 million to finance the buyout of telecom software solutions company Syndesis Ltd for over $165 million. The bonds were convertible at Rs 656 per share in March 2012 at that time.
Subex restructured nearly $141 million of those bonds in 2009, with a new conversion price at Rs 80, following which the face value came down to $55 million.
Shares of the company were trading at Rs 25.90 on the Bombay Stock Exchange (BSE) in late afternoon session, up 9.98% from its previous close.