Anthony @ Equity Investigations, Dear Anthony, Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony,

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: jlib who wrote (27824)	4/7/1999 11:09:00 PM
From: RockyBalboa	Read Replies (1) of 122087

That looks like a convertible issue. They issue shares which represent 1/100 parts of a convertible preferred stock, which gets PIK dividends (pay in kind). "Convertible" usually refers to the term convertible into common stock at a fixed, or floating basis. The liquidation preference refers to a payment if certain clauses are met, can be redemption of the preferred stock, rather than conversion into common shares. It is also mentioned here: edgar-online.com (they are registering 10M shares for resale). "The following table sets forth our consolidated capitalization as of December 31, 1998 and as adjusted to give effect to the January 1999 offering of approximately $300 million aggregate principal amount of senior notes by Hermes Europe Railtel B.V. and the offering of the 6,000,000 depositary shares representing shares of our convertible preferred stock. The consummation of this offering is not conditioned upon the consummation of the depositary share offering, and we cannot assure you that the depositary share offering will be consummated." Usually a company files an 8-K statement in which the exact terms are written down, regarding -conversion (into common shares), exact conversion terms + registration rights to resell the newly created common shares -redemption, and certain clauses under which a redemption (returns the preferred stock against cash) -preference over common shares in case of dissolution of company... -voting rights ... C.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next