Shorters using Warrants to limit their risk, page-5

The bond that was issued with the warrants, the 11% note, was not convertible. When they were issued the stock was well below one dollar, so no arb there. Like I mentioned, the largest guy in that issue never sold bonds or warrants. They were an add on buyer. That issue was originally $150mm and they had more than half to start. At that time the bonds were quoted and traded as units. After a while there were a few trades done just as bonds, but very very few. Almost all of the original buyers were US or global funds. The last time I checked very few wts had been exercised. The guys who have them are bond guys, kind of different mind set for investing. These were penny wts, no cost to the bondholder, just thrown in to sweeten the deal. I think it came out to be around 370,000 wts for every $1mm of bonds.