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

To: Bleeker who wrote (7392)	8/1/1998 12:12:00 PM
From: Sigmund	Read Replies (1) \| Respond to of 14266

Bleeker, any thoughts on the timing of the announcement. Isn't it usually the case that the announcement of a PP takes place after the PP is closed or just before the PP is closed? It is a private transaction after all. Do you think there was a leak? This way it seems as if the lenders need to be found. Having announced the intention it becomes more like a public offering with the possibility of people having heard the announcement calling and volunteering. Doesn't this create blue sky problems? I am very curious about this.

To: Bleeker who wrote (7392)	8/1/1998 1:24:00 PM
From: Ron Harvey	Read Replies (1) \| Respond to of 14266

<< If that's the case we are talking about a lot of shares without knowing what the convers. price is yet. But definitely well over 1.3 million.>> Two million or more would be a safe calculation, I think. And the premium in conversion price won't be way higher than the then-current trading price. If so, the interest rate would have to be pretty high to compensate. Typically, companies do a dilutive convertible like this because they can't get an equivalent credit line, they can't do an equivalent equity distribution, and they can't get straight bond debt. It's what you settle for after various refusals.

To: Bleeker who wrote (7392)	8/1/1998 3:15:00 PM
From: Andrew C.R. Biddle	Read Replies (1) \| Respond to of 14266

Bleeker- Last year in early December, ATVI issued convertible subordinated notes to raise 60 million. They convert to 3.178 million shares at a price of $18.875 by the year 2005 and pay an interest rate of 6.75%. The price of the stock at the time of this was $16. + 0r - (just looking at the chart). Since they (ATVI) issued these notes the price of their shares have never hit the price of $18.875 (note holders would have been smart to short the stock). In ATVI's recent PR about their Q1 earnings of negative 19 cents per share; it was based on " shares outstanding " not diluted shares. biz.yahoo.com Here is a quote from their June 15th 10k about how they do this: >>RECENTLY ISSUED ACCOUNTING STANDARDS Statement of Financial Accounting Standards ("SFAS") No. 128, "Earnings per Share," is effective for financial statements issued for periods ended after December 15, 1997. SFAS No. 128 replaces Accounting Principles Board Opinion ("APB") No. 15 and simplifies the computation of earnings per share ("EPS") by replacing the presentation of primary EPS with a presentation of basic EPS. Basic EPS includes no dilution and is computed by dividing income available to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution from securities that could share in the earnings of the Company, similar to fully diluted EPS under APB No. 15. The Statement requires dual presentation of basic and diluted EPS by entities with complex capital structures. The Company adopted SFAS No. 128 for the financial statements for the fiscal year ended March 31, 1998 and has presented Basic EPS and Diluted EPS for all periods presented. << In their 10 k they show both. sec.yahoo.com Andrew

To: Bleeker who wrote (7392)	8/1/1998 3:35:00 PM
From: AreWeThereYet	Read Replies (1) \| Respond to of 14266

Bleeker, you maybe wrong so am I. Maybe someone else can confirm... One major advantage of convertible notes is that there is no immediate threat of stock dilution. From what I saw from AKLM, there is no dilution from the note as of FY98Q2. There is noticably dilution in Q3 but I don't know whether this is a result of the bond or something else. Ron: I doubt the amount will be much greater than 2 million. Stock is trading around $28 now. If THQI issue the note at $30 (oh no), it will require only two million. aC Excerpt from AKLM previous announcement... "On February 26, 1997, Acclaim Entertainment, Inc., a Delaware corporation (the "Registrant"), completed a private placement of its 10% Convertible Subordinated Notes due 2002 (the "Notes"), in the aggregate principal amount of $50 million. The Notes are unsecured, and are convertible into shares of the Registrant's common stock, $.02 par value per share (the "Common Stock") at any time after 60 days following the date of initial issuance and prior to maturity, unless previously redeemed, at an initial conversion price of $5.18 per share, subject to anti-dilution adjustment under certain conditions."