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Technology Stocks : CYRIX / NSM -- Ignore unavailable to you. Want to Upgrade?

To: Jim McMannis who wrote (23232)	1/24/1998 10:46:00 AM
From: James Fink	Read Replies (2) \| Respond to of 33344

Can somebody explain the importance of the following excerpt from NSM's 10-K: In September 1995, the Company completed a private placement of convertible subordinated notes in the total amount of $258.8 million to certain qualified investors. Interest is payable semi-annually at an annual rate of 6.5 percent. The notes, which mature in 2002, are not redeemable by the Company prior to October 3, 1998. Thereafter, the notes are redeemable at the option of the Company, initially at 103.714 percent of face value and at decreasing prices thereafter to 100 percent of face value at maturity, plus accrued interest. The notes are convertible at any time into shares of the Company's common stock at a conversion price of $42.78 per share and are subordinated to senior indebtedness of the Company. The notes have not been and will not be registered under the Securities Act of 1933 and may not be offered or sold within the United States absent registration or exemption from such registration requirements. Does this give NSM an incentive to keep the stock price up above $42.78 per share? It would seem if the stock was above this price, the debt holders would convert and it would save NSM not only a hell of a lot of interest, but also the obligation to pay back a huge amount of principal!