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Technology Stocks : Spansion Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Biomaven who wrote (3709)	4/2/2008 7:38:47 PM
From: Plissken	Respond to of 4590

Good point there!

To: Biomaven who wrote (3709)	4/2/2008 8:18:00 PM
From: bobs10	Read Replies (1) \| Respond to of 4590

you: Bottom line is that we don't know all the details here, but we do know their Preferred stake is likely worth much more than 6.5% of the company. me: Well, it's worth 6.5% of the stock unless they renegotiate, which is something they probably would have done prior to the announcement. It is possible though that there are some future triggers that would cause either Numonyx or INTL/STM to have to pony up some cash to Francisco Partners. As a creditor they will have an advantage over equity holders, but without more details it's hard to say how far down the recovery chain they might be. Presumably all/most of the cash would be gone before Numonyx declared bankruptcy. Of course the note holders would go after INTC and STM first, which means that Franscisco partners would still have to wait for the liquidation of assets before they could have any recourse. Given a bankruptcy fire sale, how much cash will remain to cover Francisco Partner's $150M investment is anyones guess. INTC and STM are also note holders, so I wouldn't say that Francisco Partners has that much better a position than INTC or STM as equity holders unless the contract was written that way. There are just too many missing details to attach any sort of value to the deal. In any case, a $2.4B valuation for Numonyx seems way high.