Judy,
WIND's share price is now hovering around the conversion price of the convertible subordinated notes issued in July 1997. Over a year ago Mark Brophy suggested on this thread that WIND would hit resistance at this level due to convertible bond arbitrage. Looks like we're coming to the point where we'll find out if he was right. From WIND's 10-K:
In July 1997, the Company issued $140 million of 5.0% Convertible
Subordinated Notes (the "Notes"), due 2002. The Notes are subordinated to all existing and future senior debt and are convertible into shares of the Company's Common Stock at a conversion price of $48.50 per share. The Notes are redeemable at the option of the Company, in whole or in part, at any time on or after August 2, 2000 at 102% of the principal amount initially, and thereafter at prices declining to 100% at maturity, in each case plus accrued interest. Each holder of these Notes has the right, subject to certain conditions and restrictions, to require the Company to offer to repurchase all outstanding Notes, in whole or in part, owned by such holder, at specified repurchase prices plus accrued interest upon the occurrence of certain events.
Regards,
-Greg |
