As the risk of sounding like a delusional ramper, my take is that AMGN's option to convert to shares allows the drug maker to participate in any meaningful upside should it occur. I'm sure UNS was selling this scenario as no small peanuts. On the off-chance that it does happen, why wouldn't a company want to have that option? So to me it is less about the need to convert the notes and more about having the ability to capture greater ROI. After all, if UNS fails to execute, would conversion have any value? I would expect those shares to be worthless.
Feel free to punch holes or clarify if I've missed something (entirely possible).
UNS Price at posting:
20.0¢ Sentiment: Hold Disclosure: Held
