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Technology Stocks : Wind River going up, up, up! -- Ignore unavailable to you. Want to Upgrade?

To: Gottfried who wrote (9918)	12/5/2001 10:05:55 AM
From: JSwanson	Read Replies (1) \| Respond to of 10309

Below is a reply to an email I sent WIND in September regarding the maturing convertible issue. My questions in bold and WIND's response following. At 01:26 PM 9/20/01 -0400, you wrote: With the maturity of WIND's convertible issue less than 1 year away I have a few questions regarding its maturity. 1) What are the plans to payoff the debt? At this point, the company is acting responsibly to consider the convertible as debt to be repaid within the next ten months. Certainly, we will be opportunistic to utilize our strong balance sheet to buy back portions of the bond if appropriate. We settled $11.3 million in the second quarter and guided that we will continue to be active in repurchasing should the right opportunity arise. 2 Has WIND purchased back any of the debt to date? What is the current price of the bond (Being a private placement,I can't find a quote)? As mentioned above, WIND purchased $11.3M in face value of the notes during the second quarter. To find the current price of the bond, please go to the following URL: nasdaq.com 3) I assume that the company would like to maintain its cash position. If that is the case, what type of debt issues are being discussed in order to refinance? We are certainly managing our capital structure to maintain a strong and flexible balance sheet. We have not announced any specific alternatives for debt financing, but would point out that we ended the second quarter with over $315 million in cash and cash equivalents. The offsetting convertible remaining outstanding was approximately $129 million. 4) Is the company contemplating another convertible issue given the multi-year low on the price of the stock? We would never rule out the possibility of a convertible, but would not expect one at these levels due to the multi-year low. Also, since we do have a strong balance sheet - even considering the impact of paying down all of the debt - we do not need to increase our cash position at this time. ----- I sickens me that they are willing to sell stock at roughly 50% above recent prices. However, given the answer from WIND, it looks as if that was the only way to get access to the capital they needed.