Advanced Micro Devices - Moderated (AMD) Message Board

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Technology Stocks : Advanced Micro Devices - Moderated (AMD)

AMD 215.11

+0.1%

Dec 24 12:59 PM EST

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To: Joe NYC who wrote (68783)	1/24/2002 6:02:10 PM
From: andreas_wonisch	Read Replies (2) of 275872

Joe, Re: On the new convertible bonds, how is the dilution calculated? If the bonds are converted to shares, how many shares will be issued. There's an article from Reuters with this information on the bonds: biz.yahoo.com AMD said the bonds carry an initial coupon of 4.75 percent and are convertible into AMD shares at $23.38, a 40 percent premium over the shares' $16.70 closing price Wednesday on the New York Stock Exchange. From an investor perspective, the terms were the most favorable expected -- a 4.25 percent to 4.75 percent coupon and 40 percent to 45 percent premium had been expected. $500,000 / $23.88 = 20,938 I am no accountant but this seems about right to me. With 34,000 shares outstanding at the end of Q4 this would lead to an dilution of about 6%. Too bad AMD didn't sell any stock (or convertibles) when the stock was twice as high as now. Andreas

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