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Technology Stocks : Cymer (CYMI) -- Ignore unavailable to you. Want to Upgrade?

To: Elroy Jetson who wrote (17997)	6/8/1998 4:11:00 PM
From: William Peavey	Respond to of 25960

Elroy and Mtn Man and others who may find these convertibles intriguing: The bond trader at RayJames told my rep that there isn't a regular symbol for these "notes," as they are referred to in Cymer's annual report. Internally, they refer to them as CYM04, but that might may or may not mean anything outside the firm. I was just faxed a schedule of the yields to call based on a price of 80 which originated within the Bloomberg organization. it refers to them as: Cymer Inc CYMI 3 1/2 08/04 NOT PRICED. If Cymer calls them before August 9, 2000 they must pay holders $106.3720 ($1060.372 per $1000 par value note.) This is a yield to call of 17.578% and at a price of 80 ($800 per $1000 note) represents a worst case yield of 10.119% if held to maturity. These notes are convertible at the option of the holder any time after Nov 5 1997 and prior to redemption at the rate of 21.2766 shares per $1000 per face value note. This means each note regardless of what you pay for it is convertible into this same number of shares. Therefore in our case, since we paid only $795 per note, our conversion factor is $795 divided by 21.2766 or $37.36 per share. And therefore it would begin to make economic sense to convert only after the common shares once again trade at that price or above. I hope this answers the key questions here. Bill Peavey