you are partially right; As I understand it (and this is common...

you are partially right; As I understand it (and this is common to many hybrids), GNS will do one of three things in Sep08 (after giving notice); They will either (a) pay out note holders (in my opinion unlikely) (b) exchange for equity (likely) or (c) pay an step up or extra margin of an additional 2.5% over current rate formula (unlikely);

So yes, we get the shares at VWAP with 2.5% discount but shares get slammed the day they hit share trading account (but hopefully can be managed with CFD or grin and bear it until they recover weeks later); AAZPB and GNSPA the best two hybrids and TIMPB following close behind.