How about those Converts..............................
cbs.marketwatch.com
C-Cube Microsystems' convert on the rise
By ConvertBond.com, CBS MarketWatch
Last Update: 6:01 PM ET Jul 14, 1999 NewsWatch
NEW YORK (CBS.MW) -- The convertible bonds of C-Cube Microsystems rose sharply Tuesday as the company's common stock recently made new 52-week highs.
C-Cube Microsystems (CUBE: news, msgs) 5.875 percent maturing in 2005 closed Tuesday's session at the 121 to 123 level with a conversion value of 117.4. The convert is up nicely from its 81 to 82 lows last fall, when the issue's conversion premium was above 88 percent. The issue, however, is still down from its all time high of 220 to 222, reached in the spring of 1996.
Meanwhile, C-Cube bought back much of the outstanding bonds of this
offering in 1998, diminishing liquidity in the security. The company repurchased $63.5 million of an original issue size of $86.3 million. As a result, there are approximately 22 to 23 million issues left outstanding.
Moreover, the C-Cube convert is currently callable at 104.12. Thus, the issue should continue to trade with a low conversion premium.
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