Floorless Preferred Stock/Debenture Message Board

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Strategies & Market Trends : Floorless Preferred Stock/Debenture

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To: Souze who wrote (1225)	9/19/2000 3:25:54 PM
From: Mama Bear	Read Replies (2) of 1438

Souze, what I meant was that they wrote this financing in order to take the risk out of the transaction. They do not care, or want the price to go up or down. This is not a true floorless in that the company has control of when they choose to put the stock to Bear. Bear gets $5 million up front. I haven't read the document closely, but I'd bet that Bear has a right of refusal, and/or gets warrants. From my cursory look, it's not the really terrible kind of floorless. Zeev Hed has referred to this type of financing as a 'leaky' floorless. Also, I am not aware of Bear playing the floorless game, at least not like some other names that you will see offering floorless financing to the dregs of the market. Regards, Barb

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