Privately Negotiated Convertible Hedge
and Warrant Transactions
We remain confident that we will be successful in one or more of these prospects so we have also included a convertible hedge
overlay to reduce dilution to our current TXCO stockholders.
0 million net cost of the convertible hedge
and warrant transactions described below.
3 million paid as the cost of certain convertible hedge
and warrant transactions entered into in connection with the debenture offering).
The Company intends to use the net proceeds from the issuance of the Convertible Notes to repay a portion of its existing floor plan borrowings under its Credit Facility, which may be re-borrowed, to repurchase up to $50 million of its common stock, and to pay the net cost of the convertible hedge
and warrant transactions.
In a letter to the Limited Partners dated February 20, 2002, the General Partner shocked the public, the convertible hedge
fund industry and the Limited Partners by revealing that the assets of the Partnership had been substantially overvalued and that the actual value of the assets of the Partnership would be devalued "in the neighborhood of 40%.
0 million of new convertible debentures in February, and Polar HEITs has a substantial position in a good, new convertible hedge
1 million, after deducting the underwriters' discounts and estimated offering expenses payable by the company (including the cost of certain convertible hedge
and warrant transactions entered into in connection with the debenture offering), assuming the underwriters do not exercise their option to purchase additional debentures or shares of class A common stock.
Access to key documents and the ability to efficiently navigate them is critical," said Michael Knox, the founder of Xtract Research and a former High Yield and Convertible hedge
A convertible hedge
transaction that has the effect of increasing the conversion premium on the New Notes to $5.
6 million of the net proceeds of the offering, representing the cost of the convertible hedge
transaction partially offset by the proceeds of the call option transaction.
Weiser Investment Management Limited, Noddings Convertible Hedge
Partnership and The Putnam Companies, had indicated to the representative, and the representative had indicated to Hadson, that such holder intended to vote to reject Hadson's plan.