SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : 8x8 (EGHT)
EGHT 1.945-1.3%Nov 14 9:30 AM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: pirate_200 who wrote (790)12/20/1999 5:35:00 PM
From: pirate_200  Read Replies (1) of 1927
 
Any MBAs or financial professionals out there?

Have you read 8x8's press release about its private
placement for $7.5M financing through BBRS?
The "series B" debenture isn't under the $4 to $7 price collar
if you read the terms as written in the press release:

> The debentures have a term of three years and carry an interest
> rate of 4 percent per annum, which may be paid in cash or
> common stock. The Series A debenture is convertible into 8x8's
> common stock at a conversion price equal to 117.5 percent of the
> average closing bid price of 8x8's common stock for the five
> trading days starting February 1, 2000, but in no case will the
> conversion price be higher than $7.05 or lower than $4.00. The
> conversion price of the Series B debenture will be 117.5 percent of
> the average closing bid price of 8x8's common stock for the five
> trading days starting March 8, 2000. The Company has the
> option to redeem the Series B debenture at par in the event that the
> Series B conversion price is lower than the Series A
> conversion price divided by 1.175.

We don't know how much of the $7.5M is "series A" or
"series B" - might be that it is split in half or all
of the $7.5M is available to convert as "series A".
The SEC docs will explain this but they might not
be out for a while.

What we do know is that the collar seems to be only
on the February buy-in period, not the March (series B)
period. So, the question is: what happens between
February and March that would remove the collar?
Anticipated big contracts?

I read this announcement too quickly the first time.

This still seems to be a sweet deal for the owner of
the loan, though the conversion terms makes things
"curiouser and curiouser".

Is there an MBA out there or someone with experience
in private debenture financing with conversions that
could let us know whether these are common terms or
as strange as they seem to me?
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News