Redback Networks launched its offer to exchange shares of the company’s common stock for all of its outstanding 5% Convertible Subordinated Notes due 2007. The holders of approximately 67% in principal amount of the notes have already agreed to tender in the offer, which is part of Redback’s proposed out-of-court financial restructuring. The exchange offer expires on October 30, 2003.
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- In July, Redback reached agreement with a committee of its bondholders to exchange $467 million in debt for new equity in the company. If all of the Notes are exchanged, the noteholders will receive approximately 95% of the issued and outstanding common stock immediately following completion of the transaction and the existing holders of common stock will initially retain approximately 5% of the issued and outstanding common stock of the company.