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Technology Stocks : Lucent Technologies (LU)

LU 2.585

-2.6%

Dec 29 3:59 PM EST

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To: Larry Brew who wrote (18557)	8/3/2001 11:22:21 AM
From: Larry Brew	Read Replies (1) of 21876

From the press: MURRAY HILL, N.J., AUG. 1 /PRNEWSWIRE/ -- LUCENT TECHNOLOGIES (NYSE: LU) TODAY ANNOUNCED THAT, DUE TO SUBSTANTIAL INTEREST, IT HAS RAISED APPROXIMATELY $1.75 BILLION THROUGH ITS OFFERING OF REDEEMABLE CONVERTIBLE PREFERRED STOCK, WHICH WAS PRICED AT $1,000 PER SHARE. THE CONVERTIBLE PREFERRED SHARES HAVE AN ANNUAL DIVIDEND RATE OF 8 PERCENT AND ARE CONVERTIBLE INTO LUCENT COMMON STOCK AT A CONVERSION PREMIUM OF 22 PERCENT OVER THE CLOSING STOCK PRICE OF $6.13 A SHARE (CONVERTIBLE AT A PRICE OF $7.48 PER SHARE). BEGINNING IN AUGUST 2006, THE COMPANY HAS CERTAIN RIGHTS TO REDEEM THE SHARES, AND BEGINNING AUGUST 2004 THE HOLDERS HAVE CERTAIN RIGHTS TO REQUIRE THE COMPANY TO REDEEM THE SHARES. THE SHARES HAVE A MANDATORY REDEMPTION BY THE COMPANY IN 30 YEARS. ----------------------------------------------------- The preferred offer doesn't look like something a hedge fund would be interested in to me. It's a long term strategy. The way I read it is that there's no conversion anytime soon. It's 8% on the money short term. Larry

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