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

To: Zeev Hed who wrote (559)	7/8/1999 1:03:00 PM
From: Greg Hull	Read Replies (2) \| Respond to of 1438

Zeev, << if I understood correctly, after these repricing periods for the tranches, the conversion stays the same, that set during those repricing periods>> Thank you for the more accurate reading; I am now reading it the same as you: that the pricing remains fixed. <<then arbitraging against that ceiling kicks in and cause downward pressure into each of the three repricing periods.>> So we should expect to see downward pressure on days 15-25 after the sale date of 6/29/99, and again on days 45-55 and 75-85. If I am counting correctly these time periods would be July 14-July 23, Aug 13-Aug 23, and Sept 13-Sept 22. <<The pricing period for Tranche 1, Tranche 2, and Tranche 3 begins on the 15th, 45th and 75th calendar day after the date of original issuance of the Series C Preferred stock, respectively.>> Since each tranche will convert into approximately 1 million shares of common stock, the impact on a stock that trades about 9M/day should not be too disruptive. Thank you once again, Greg