Fri, Mar 14, 2014, 11:37 PM EDT - U.S. Markets closed

# Corrections Corporation of America Message Board

• grunka grunka Sep 29, 2000 1:55 PM Flag

## Conversion

Today is the 10th trading day prior to the first
conversion period. Based on the closing price of the common
these ten days, the average is under \$1 so we should
get 24.46 common shares for each Pref B, Correct?

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• At no time in the past 10 trading days did PZN
trade under one dollar. So how could the average be
under \$1. ? I show the following
closing prices
(based on Yahoo) for the past ten
1.9375, 1.9375, 1.8125, 1.8125, 1.7500, 1.1875, 1.1875,
1.1250, 1.000, 1.3125 = 15.0625 total. divided by 10 =
1.50625 = average price per share. 24.46 divided by
1.50625 = 16.2395 shares for each Preferred B
share
converted . I don't know how PZN will handle the fractions.

• 4 Replies to bensabia
• Bensabia had the "conversion" price bang on back on Friday, if the closing prices noted in his post # 15472 are "official". If so. it looks like \$1.50 is valid.
Thanks ben, good call!

• I was basing it on the adjusted closing cost, do you know for a fact that thats not the figure that will be used for the average, or will PZN use whatever figure that is to their advantage.

• Ben, I believe you are correct. Therefore in the
first conversion period a PZN.B shr will become
16.239004149 shrs of common.

100 shrs of PZN.B will
become 1623.9 shrs of the common. Upon conversion,
fractional shrs will be credited in cash, and the account
should show 1623 shrs and .9x1.50625 (\$1.36) in cash.
That's my take, anyway.

Question is, what will
PZN trade at during the ten days preceeding the
second conversion period? More than a \$1.50 average?
Those meaning to convert will have to decide the answer
before 10/13.

• I've been out of touch with the board since last
week or so when I sold some PZN for tax loss
purposes..can you give me your assessment as to what the
general opinion is regarding the conversion and when is
the window open ?
Would appreciate, still have
substantial position.

• The first half of conversion period was pre-dividend. If PZN closes at \$1.125 today I figure the conversion price is \$1.4375 for the first period.

• It looks like today's close will be \$1.3125. This
should mean a conversion price of \$1.50.

However,
just for fun, I checked Yahoo's historical quote data
and found that for the period prior to the dividend
there is an adjusted price listed which totals \$4.4626
for the first five days of the conversion period. If
this price is used the conversion price becomes
\$1.0275.

Note: the press release says the average close on the