. Having witnessed such terrible management over the last few years, we don't know what further trouble these executives have brought upon the company. In the greatest economic boom the country has seen in its history, these guys are
$200 million in subordinated convertible debt convertible due in 2004 [that's in 48 months] convertible into 22.4 million common shares at $8.75 per share. And ... the the debt may be redeemed any time after 11/1/00.
In 1999 ... the company acquired 5.5 million treasury shares and is looking to acquire another $20 million in 2000 .... assume 6.2 million at $3.22 per share. This puts the company in a position of having 11.7 million shares .. 52% of the shares needed for the debt conversion ..... at an average price of $3.85.
Assume a conversion of 52% of the debt ..... $104 million in exchange for treasury stock costing $45 million. Not a bad deal.