Amkor Technology, Inc. 5 3/4% Convertible Subordinated Notes Due 2003
biz.yahoo.com
Normally I ignore stuff like this, but decided to see what it really means. Essentially, Amkor borrowed $50M bucks with these convertibles and now it is payback time. The holders can get 74 shares for every $1000 in notes they have, which, at $23 a share, comes out to $1700 for every $1000 borrowed--not a bad deal, and so you can expect that every note will be converted to stock. That adds $50M/$1000 * 74 = 3.7 million new shares of AMKR, which increases the outstanding shares by about 2.5%. That helps explain part of the fall today, I think--people shorting the shares to lock in the profit before actually getting the shares delivered (that is what I would do in an uncertain market).
Anyway, I don't hold AMKR now, but always follow it, and thought I'd pass this analysis on to see if I am misinterpreting anything.
Thanks,
Steve |
