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Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: Icebrg who wrote (38360)	2/26/1999 1:24:00 AM
From: Robert H.	Respond to of 95453

Related Quotes FLC 6 1/16 +13/16 delayed 20 mins - disclaimer Thursday February 25, 4:52 pm Eastern Time S&p May Cut R&b Falcon Corp and Unit (Press release provided by Standard & Poor's) NEW YORK, Feb 25 - Standard & Poor's today placed its double-'B'-plus corporate credit and senior unsecured debt ratings on R&B Falcon Corp.and subsidiary Cliffs Drilling Co., on CreditWatch with negative implications. The CreditWatch placement follows R&B Falcon's announcement that it expects to issue a minimum of $400 million in additional securities to obtain the necessary liquidity to meet remaining capital spending requirements for its drilling rig construction program. This could result in an unanticipated increase in debt and thinner cash flow protection measures. Moreover, the markets to which the company has targeted its investments have declined steeply and remain soft, and prospects for price recovery in 1999 and potentially 2000 remain weak. This has left R&B Falcon vulnerable to additional drilling contract cancellations and/or revisions, which could further erode credit quality. Standard & Poor's will review these setbacks and their impact on the company's financial condition.

To: Icebrg who wrote (38360)	2/26/1999 8:08:00 AM
From: Big Dog	Read Replies (2) \| Respond to of 95453

Re conv pref shares. It like buying options on the stock but getting paid interest while you wait to exersize and not having any decay due to time value and not paying any premium. Plus even if the stock price doesn't come to the convert/exersize price, you still get your money back. Great for the buyer, not so good for the seller (issuer) since they are basically pre-selling equity, paying interest and diluting common shareholders. Someone might comment as to the security position of a conv. preferred in the event of a bankruptcy. Where do they stand in line with bond holders? The big variable is the convert price and the interest rate. I suspect that the lower the interest rate, the lower the convert price, and vice versa. From a common stock perspective the dilution on conversion can't be a pretty thing. IMHO, a company that issues conv preferred is saying to hell with the shareholders... big loosbrock.com