Bleeker, you maybe wrong so am I. Maybe someone else can confirm...
One major advantage of convertible notes is that there is no immediate threat of stock dilution. From what I saw from AKLM, there is no dilution from the note as of FY98Q2. There is noticably dilution in Q3 but I don't know whether this is a result of the bond or something else.
Ron: I doubt the amount will be much greater than 2 million. Stock is trading around $28 now. If THQI issue the note at $30 (oh no), it will require only two million.
aC
Excerpt from AKLM previous announcement...
"On February 26, 1997, Acclaim Entertainment, Inc., a Delaware corporation (the "Registrant"), completed a private placement of its 10% Convertible Subordinated Notes due 2002 (the "Notes"), in the aggregate principal amount of $50 million. The Notes are unsecured, and are convertible into shares of the Registrant's common stock, $.02 par value per share (the "Common Stock") at any time after 60 days following the date of initial issuance and prior to maturity, unless previously redeemed, at an initial conversion price of $5.18 per share, subject to anti-dilution adjustment under certain conditions." |
