Ian, last August, Lam sold some convertible debentures to raise $310 M of cash. It was nice timing to raise some cash, before the stock tanked, and the interest is nice and low at 5%.
Last fall, Lam filed a prospectus to register shares of the common stock, so that the convertible owners can convert someday, at a conversion price of $87.77, and then sell the new shares on the open market. They won't do this, of course, until the stock gets above $88. When the day comes that they do convert, there will be about 10% dilution of the common stock.
The filing yesterday, which you inquired about, is an amendment to the prospectus, and it merely reports that a few of the convertible notes had changed hands. Somebody named Shepherd Securities sold their notes to the Deutsche Bank, for example. This has no effect on the company or the shareholders.
In short, the filing was a non-event. |
