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Strategies & Market Trends : Floorless Preferred Stock/Debenture -- Ignore unavailable to you. Want to Upgrade?

To: Greg Hull who wrote (558)	7/8/1999 12:20:00 PM
From: Zeev Hed	Read Replies (1) \| Respond to of 1438

Greg, interesting and sets up CMGI for a number of hedging situation, but this is not truly a floorless. There is an initial conversion rate at a fat premium to market (150%), then each tranches has a 10 days "repricing period", if I understood correctly, after these repricing periods for the tranches, the conversion stays the same, that set during those repricing periods. One would expect to see the underwriter, support the stock above (hopefully 50% above?) the price during issue, and then arbitraging against that ceiling kicks in and cause downward pressure into each of the three repricing periods. Zeev