Target $9.36, page-2737

What do you mean “for bond holders that didn’t hedge out”?

i would think the dilution is significantly higher, due to the impact of dividend payments, as you mention.

it is conceivable that dividend payments over the 5 years if the convertible note will reduce the conversion price to well below $1, perhaps even as low as $0.50. This would cause huge dilution.

nhc management have a decision to make with respect to the dividend, which ordinarily would be huge, but needing to weigh up the impact of the dilution impacts in relation to the note.

I also think nhc is a better run company over the cycle with a superior track record of capital management, however the convertible note is a badly timed misstep and as a result I am currently more invested in whc.