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  • Idontwanttohearit Idontwanttohearit Oct 31, 1999 10:52 AM Flag

    NewMK and Abadaba7

    Considering your response, this would also mean
    that for PZN to issue current preferred for the
    special, it would have to do so at the current market
    price (around $15 the last time I looked which
    admittedly was a month ago) instead of the face value of
    $25. That helps to alleviate the fear of recieving a
    security worth very sustantially less than the tax or cash

    Of course, the issuance of these securities
    immediately effects the market price, as supply increases
    cause a drop.

    It seems likely that PZN would
    issue an entirely new type of security with no market
    record so that they could value the security at face
    value, instead of a depressed market. The advantage to
    the company of issuing fewer shares is less
    continuing cash outflow going forward.

    I note that
    when PAH issued preferred to maintain REIT status, its
    $25 face value had a market price of $21 by the time
    it posted to my account. Still, the company redeemed
    those shares after six months for face value plus

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