Subex raises $10 m via FCCB

MUMBAI: Subex Systems has raised $ 10 million through an issue of foreign currency convertible bonds, FCCBs. The five-year bonds carry a coupon of two percent above the six month London inter-bank offer rate (LIBOR).

The bonds are due for redemption on December 31, 2009 at par value, if not converted into ordinary equity shares. The initial conversion price of the bonds is Rs 300 per share.

The bonds are being listed on the Luxembourg Stock Exchange and the proceeds of the issue would be utilized towards primarily funding the overseas acquisitions announced by the company recently, according to the company.

Meanwhile, Intel Corp's venture capital arm has acquired a 5.67 percent stake in Subex Systems. This takes Intel Capital Corp's total holding to 10.73 percent. The mode of acquisition is conversion of preference shares.

Intel has acquired 4,79,500 shares amounting to 5.67 percent of the paid-up capital of Subex Systems. The shareholding of Intel Capital Corporation after the acquisition in Subex is 9,59,000 shares amounting to 10.73 percent