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Technology Stocks : LoopNet, Inc. (LOOP) -- Ignore unavailable to you. Want to Upgrade?

To: Glenn Petersen who wrote (36)	3/31/2009 7:28:04 AM
From: Labrador	Read Replies (1) \| Respond to of 49

There must be more to the story here. I've not studied the filing, but why would someone buy convertible preferred stock with no dividends that converts at a price higher than the current market price? Why not just go into the market and buy the common shares? I'd say that this release is likely incomplete of important terms and conditions. >>Under terms of the investment agreement, Calera Capital, Trinity Ventures, and Rustic Canyon Partners will collectively purchase $50 million of convertible preferred stock. The preferred stock is convertible into shares of LoopNet's common stock at $6.72 per share, or an approximate 10 percent premium to the closing price per share of the Company’s common stock on March, 27, 2009. If converted, the investment would represent approximately 17.8 percent of the Company's shares outstanding. The preferred stock does not pay or accrue any dividends. LoopNet may redeem all of the preferred stock if the average closing price per share of the common stock during any 20 consecutive trading days is at least $16.80, subject to the holders’ right to convert into common stock. The holders of the preferred stock will have an optional redemption right at the sixth year anniversary of the issuance.<<