Comverse zero-coupon convertibles become putable following delisting of stock

By Angela McDaniels

Seattle, March 2 - Comverse Technology, Inc. said its zero-coupon, zero-yield putable securities due 2023 and new zero-coupon, zero-yield putable securities due 2023 are putable at par until 5 p.m. ET on March 30.

As of Jan. 31, there were $419.647 million of the notes outstanding.

The company's stock was delisted from the Nasdaq Global Market on Feb. 1, and the indenture governing the notes requires Comverse to offer to repurchase the notes.

The Bank of New York Trust Co., NA is the depositary for the offer, and D.F. King & Co., Inc. (800 829-6551 toll free or 212 269-5550 for banks and brokers) is the information agent.

The company's stock was delisted because Comverse did not file its 10-Q report for the fiscal quarter ended Oct. 31 on time.

Comverse said it did not file the quarterly report because of its investigation into past stock option grants, the possible misuse of accounting reserves, the understatement of backlog for fiscal 2002 and prior periods and additional accounting issues including errors in the recognition of revenue related to certain contracts, errors in the recording of certain deferred tax accounts and the misclassification of certain expenses in earlier periods.

The Woodbury, N.Y.-based communications and information processing company plans to release its unaudited financial results for the fiscal year ended Jan. 31 on or about March 19, according to a company news release.

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