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Strategies & Market Trends : Floorless Preferred Stock/Debenture

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To: John Liu who started this subject	11/6/2002 10:18:54 AM
From: SpecialK	Read Replies (2) of 1438

Is Skyworks safe with their conversion price at $9 something? See below: Skyworks Solutions Inc. (NasdaqNM:SWKS - News), a wireless semiconductor maker, said on Wednesday it privately sold $200 million of five-year subordinated notes convertible into company stock, $40 million more than planned. Skyworks, based in Woburn, Massachusetts, said it will use some proceeds to prepay borrowings under a financing agreement with Conexant Systems Inc.(NasdaqNM:CNXT - News), a communications chipmaker based in Newport Beach, California. It said it will use the remainder for working capital purposes. The company said it could sell an additional $30 million of the notes if there were enough demand. Skyworks said its notes carried a 4.75 percent coupon and are convertible into company shares at $9.05, which is 14.6 percent above the shares' $7.90 Tuesday closing price on the Nasdaq. Skyworks said it cannot buy back the notes for three years. A convertible bond is a stock-bond hybrid that usually offers current income and can be converted into company stock. Shares often fall when a company sells convertibles because some investors sell the underlying stock short and the bonds may dilute the stock. Skyworks first announced plans for its sale on Tuesday. Skyworks shares traded Wednesday morning on the Nasdaq at $7.35, down 55 cents, or 7 percent, after falling as low as $7.10.

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