Telecom Software maker Subex will be exchanging its current foreign currency convertible bonds (FCCBs) for new FCCBs with a maturity period upto 2017 and fresh equity.

As per the news reports, the company has launched new FCCBs for $131 million at 5.7 per cent. The floor price for the new bond issue has been put at Rs 22.79per share. The company?s board has adopted this floor price for the conversion of the new FCCBs. The floor price is based on the pricing formula prescribed by the Ministry of Finance, Government of India.

Earlier in 2007, Subex had raised $180 million and $98.7 million through FCCBs which were supposed to mature in March 2012. However, the company got the bondholders to agree to extend the maturity period for the outstanding FCCBs to July 9, 2012 from March 9, 2012. In May 2012, the Reserve Bank of India (RBI) approved the restructuring proposal of the company?s FCCBs involving a combination of debt and equity.

Also, as part of the company?s plan to recast FCCBs, Sunhash Menon, chairman, will step down from the position. However, he will continue to be the founder, managing director and chief executive officer of the company.

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