elzephyrus, the bond holders can convert into equity whenever they like or just stay in for two years, collect their interest and 109% of capital in December 2012. if the share price rises above 150% of 0.38, GDO can force them to convert into shares in which case the debt is extinguished. 0.38x150% = 0.57! Simple calculation! It is unlikely bondholders will convert much before the early 50's as they will be giving away free optionality while still collecting interest! You might find as the bonds are listed they can even sell the bonds on instead of converting them before 57c and get a small premium. I'm not trying to do anything, maybe just help people like you understand it a bit better. Hope it does mate!
GDO Price at posting:
39.5¢ Sentiment: LT Buy Disclosure: Held
