"I can't understand why would one have a put option (right to sell at specified price) and also need to borrow shares to short them (hedge). I thought one of these options should suffice. Or have I misunderstood?"
It's not a stock put option in the way you described it.
The put option in this case relates the option to convert the notes into shares, so when viewed from the standpoint of the shares, its really a call option on the stock.
Confusing as all heck, this transaction.
.
NHC Price at posting:
$1.84 Sentiment: None Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)