Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Maxtor (MXTR) -- Ignore unavailable to you. Want to Upgrade?

To: Dave Hanson who wrote (76)	2/11/1999 10:38:00 PM
From: CPAMarty	Read Replies (1) \| Respond to of 467

nice write up in Forbes forbes.com

To: Dave Hanson who wrote (76)	2/13/1999 10:06:00 PM
From: radman33	Read Replies (2) \| Respond to of 467

Could someone please summarize what is going on with Maxtor right now? I know they were up to about 20 then fell to where they are now with news of the secondary offer and convertibles. First of all, how exactly will the convertibles work? $165 M at $13 issue is 12.5 M bonds which can convert to stock at some point? The dividend rate of 7% and initial premium of 18% means a conversion price of $15.34. Are convertibles like other corporate bonds where you get your par value back upon expiration, or is conversion at term mandated which would make this like preferred stock or something? If it is just an option to convert, it seems like these bonds would eliminate all the downside risk and keep all the upside (with option to convert). Also, is the combo of the 7.8 M secondary and these possible 12.5 M convertibles completely dilutive to earnings and enough to drop the stock price? Thanks, Jay.