Floorless Preferred Stock/Debenture Message Board

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Strategies & Market Trends : Floorless Preferred Stock/Debenture

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To: Ben Suntag who wrote (235)	1/19/1999 1:37:00 PM
From: Mama Bear	of 1438

Ben, most floorless preferreds are issued to companies that can't get financing elsewhere. Without looking I can say it's very unlikely that CNC-T would use such an instrument. I have never heard of one that actually pays dividends, nor one that trades on one of the open market. They are instruments that are held by offshore investors and less than honorable folks who care only for a buck. When you look at the filing, if there is a fixed price at which the conversion occurs. E.g. you can convert them into shares at 75 or 100. Floorless instruments are convertible at an unfixed price. The language is something like "at 80% of the average closing bid for the 20 trading days preceeding conversion". It might be better to check these thing before you decide to buy. Barb

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