Harvey - getting the conversion on the earliest possible day may be a tough one. The way I figure it, AMD missed the 24.05 closing price on 9 days within the 30 days that end between 5/8 and 5/15. The misses were on 4/3 to 6, 4/9 to 11 and 4/16-17. With a total of 9 misses, only one more is allowed in the next 11 trading days.
We might see AMD aggressively defending the 24.05 price in the next couple weeks. I would imagine there might be plans for a new bond issue to partially fund Fab 35, but the rating and therefore the interest rate would be much more favorable if AMD is almost debt free as would be the case if the bondholders received AMD shares and retired the bonds.
The Notes are redeemable, in whole or in part, at the option of the Company, at any time on and after May 15, 2001, at the redemption prices set forth in the call schedule, plus accrued and unpaid interest, if any, to the date of redemption; provided that the Notes will not be redeemable prior to not be redeemable prior to May 15, 2002, unless the last reported sale price of the Common Stock is at least 130% of the then effective conversion price [i.e., 24.05] for at least 20 trading days within a period of 30 consecutive trading days ending within five trading days of the date of the redemption notice.
Thus there could be a redemption notice on 5/15/01 if the stock closed above 24.05 on 20 of 30 trading days ending 5/8/01. Those 30 trading days encompass the period 3/27 through 5/8. If G represents > 24.05 and L represents <=24.05, and a space represents a weekend, then we have the following:
Starting Tues. 3/27: GGGG GLLLL LLLG LLGGG G???? ????? ??
We have 10 days above, 9 days below and 11 days left. If we don't get 10 out of the next 11, it will probably be at least a couple weeks before the next good opportunity. (because of the string of G's in the beginning).
Petz |
