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Technology Stocks : MRV Communications (MRVC) opinions? -- Ignore unavailable to you. Want to Upgrade?

To: rascalbythesea who wrote (31965)	5/15/2001 4:07:06 PM
From: James Calladine	Respond to of 42804

MRVC CONVERTS: Last time I checked (in this case through Schwab) they were available through their bond department, but they had to scout around a bit to find them. Best wishes, Jim

To: rascalbythesea who wrote (31965)	5/15/2001 4:43:07 PM
From: akmike	Read Replies (3) \| Respond to of 42804

Hello Rascal, They will not be called because MRVC will not want to put up the 90 million to call them. So the bonds will remain until maturity. I can't let that one slide by. The company does wish to conserve cash; therefore, the bonds will be called as soon as two moons coincide: a. the call date has been reached (June 01) b. when the price of the common is sufficiently above parity to "force" the bondholder to convert rather than have that excess value called away. (timing here is uncertain, eh?). The reason for all this is exactly the heart of your premise-cash conservation. When the company can force conversion, they do away with the interest expense, add the equity to the balance sheet, and have a better set of facts to present to potential creditors, investors, and customers. The bonds will be called at the earliest opportunity. (and that was a known circumstance upon their issuance) Best regards, Mike