>>Oh, jeeez.... one of those?? ARIAD play?>>
I don't see this as an immediate risk thanks to the company's healthy cash position. Despite what a certain analyst likes to imply.
>>Zero Coupon Subordinated Exchangeable Notes Due 2018
As of December 31, 2001, Elan had $951m of 3.25% Zero Coupon Subordinated Exchangeable Notes Due 2018 (the “Notes”). The Notes are exchangeable, at the option of the holders, into Elan ADSs. The holders can also put their Notes back to Elan on each of December 14, 2003, December 14, 2008 and December 14, 2013. If put, Elan can repay a Note in cash, by the delivery of Elan ADSs, or in any combination of cash and Elan ADSs, at Elan’s option.>>
So, the holder has the decision if he would like to use the put or not. But Elan may then decide if cash, stock or a combination should be used to meet the put.
Ice |
