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To: Jorj X Mckie who wrote (4169)	8/16/2001 1:17:03 PM
From: Stoctrash	Read Replies (1) \| Respond to of 10077

yep...bingo...NVLS did a convert: biz.yahoo.com Friday July 27, 5:14 pm Eastern Time Press Release SOURCE: Novellus Systems, Inc. Novellus Systems, Inc. Completes $800 Million Convertible Subordinated Debt Offering SAN JOSE, Calif., July 26 /PRNewswire/ -- Novellus Systems, Inc. (Nasdaq: NVLS - news), the productivity and innovation leader in thin film deposition and surface preparation technology for the global semiconductor industry, today announced that it has completed its previously announced offering of 30-year zero-coupon, zero-yield convertible subordinated notes due 2031, known as LYONs. The gross proceeds from the offering were approximately $880 million (including an additional amount of $80 million representing an exercise of the over-allotment option). Certain proceeds from the sale of the LYONs will be pledged to secure Novellus' obligations under the LYONs until July 26, 2002, including Novellus' obligation to purchase some or all of the LYONs on July 26, 2002 for cash. Upon the expiration of the obligations under the pledge account, the company intends to use the net proceeds of the offering, if any, for general corporate purposes, including working capital. \========== detials Friday July 20, 11:39 am Eastern Time Novellus sells $800 mln convertible bonds NEW YORK, July 20 (Reuters) - Semiconductor equipment maker Novellus Systems Inc. (NasdaqNM:NVLS - news), which on Monday reported a 24 percent decline in second-quarter net income from a year ago, on Friday sold $800 million of 30-year bonds convertible into Novellus stock, a person close to the private sale said. San Jose, California-based Novellus's unrated bonds yield zero to maturity and are convertible into Novellus shares at $76.36, a 52 percent premium, one of the highest ever, over the shares' $50.25 Thursday closing price. A 52 to 55 percent premium was expected. The shares' 52-week high and low are $68.75 and $24.94. Novellus said on Thursday it would sell $80 million more bonds if there is enough demand, and will use proceeds for general corporate purposes, including working capital. The bonds are noncallable for three years, and bondholders may ``put,'' or return, the bonds to Novellus after one, five, 10, 15, 20 and 25 years. Bondholders may convert the bonds only when Novellus's shares trade at least 10 percent above the official conversion price for a period of time. Merrill Lynch & Co. arranged the sale, an industry source said. A convertible bond is a hybrid security that usually offers current income -- zero-coupon bonds do not -- and can be converted into company stock. Novellus shares traded Friday morning on the Nasdaq at $47.75, down $2.50, or 5 percent. Email this story - Most-emailed articles - Most-viewed articles --------------------------------------------------------------------------------

To: Jorj X Mckie who wrote (4169)	8/16/2001 1:59:17 PM
From: Original Mad Dog	Read Replies (1) \| Respond to of 10077

I wonder if anyone has done a study lately on companies that do convertible deals, and whether they are more prone to underperform the market or even go under altogether. Doing a convertible deal can make sense sometimes.....but to me it seems like someone who runs out of money to pay the heating bill, so they start heating the house by cutting down all of the trees on the property. For awhile it may keep you warm, but unless you find some other source of funds (like earnings for example), eventually you will run out of trees for firewood, and then you will freeze to death.