Ann: Convertible Note Offering, page-4

"Low rate and good premium to current share price for conversion."

Yes, the coupon is indeed low but be careful on your assumptions about the level of the conversion price.

The premium for conversion is not relative to the current share price, but to the price which will be determined (the "Reference Price") by the sale of shares by those note holders seeking to hedge their positions.


"I don’t understand the detail about whsp offering to sell / loan 50 million shares for the $150 million. But at $3/share, it appears like whsp are getting a good premium to the current share price if this happens!"

No, WHSP are not selling their shares; instead, they are making 50 million shares [*] available for people to borrow, should those people wish to participate in the sale of shares as a hedge for their notes.

[*] That's if demand for the note offering is $150m; if it is $200m, then WHSP will make 75m shares available for borrowing. I think you took $150m and you divided it by $50m to get $3/share, but that's not at all correct.


Needless to say, its a very confusing deal; it took me a good while to work out what is happening (and I'm still not sure I'm 100% correct).

.