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Technology Stocks : CDRD (CD Radio)
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To: Candle stick who wrote (240)10/4/1997 1:59:00 AM
From: Dave Gahm   of 904
 
The exchange offer is pretty lucrative, they will likely be successful IMHO.

In a nutshell:

The exchange rate is determined by dividing the liquidation preference, including unpaid dividends, by .696145. So every $100 of old preferred exchanges for $143 of new.

The new preferred accrues dividends of 10.5 % annually, though none will be paid until Nov. 15 2002.

The new preferred is convertible at any time into common at the lesser of $21, or the issue price of the upcoming stock offering.

If the company has not raised $100 million by May 15, 1998, the New preferred converts back automatically to Series D convertible, with another 43% kicker.

Merril Lynch will make a market in the New preferred to provide liquidity to holders.

Dave
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