The convertable notes will sorta act as an anchor to having the shares move up...i.e. if the RAS shares go to $3 or more, then people holding the converts. can convert the notes to NEW SHARES (and get their's for $2.56 / share), diluting the existing ones....so, sorta like "the Sword" hanging over the shares.
Generally, the "conversion price" is set quite a bit above the existing share price...so that sorta tells you something about how strong the markets feel about RAS...not too strong.
Some would think " why issue $100 million in convert. notes at 7% interest...rather than sell the shares at $2.56 outright...get the money...and not have to pay 7% on the paper"...Well, that also may tell you that things are not "strong" and perhaps they could not get an underwriter to simply take the shares at $2.56 (without the 7% sweatener).
Bottom line : those convert notes will likely be like a weight around the neck of the RAS common shares....until all the notes are eventually converted....and that may be awhile....So, that may also be a reason that some would "leave the common stock"...don't wanna sit there in "dead money" , with little upside for now...But if they have much better earnings, etc, they can move ahead even with the converts hanging over them...but they'll have to do a good job...and the economy will have to recover more !
I'd have actually thought the converts would have been 'decent' news for the preferreds...i.e. that the company is raising $100 million for their needs...should have strengthened the preferreds...but yesterday, they go whacked...haven't looked this morning, tho....All in all tho, I'm optimistic that they'll climb back up, going into the next x-date...but no promises (I've seen asinine stuff before, with AHTPRD in the past)