Liquid yield option note

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Liquid yield option note (LYON)

Zero-coupon, callable, putable, convertible bond developed by Merrill Lynch & Co.

Liquid Yield Option Note

A convertible, callable, and putable zero-coupon bond. A LYON is a bond that is convertible to common stock and may be bought or sold as an option, but which does not pay interest. Because it pays no interest, it is issued at a considerable discount from par value of the bond. This guarantees a positive return to the investor, at least until such time as it becomes profitable for the investor to put the bond back to the issuing company for an amount over the issue price. Generally, the total return on a LYON is less than that of the company's common stock, assuming the company does well.
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The net proceeds of the offering of the senior subordinated notes are currently anticipated to be used for the potential repurchases of Liquid Yield Option Notes, or LYONs, and general corporate purposes, including future acquisitions.
Proceeds of the offering will be used to repay XL's outstanding issue of liquid yield option notes (LYONS) due 2021.
announced today that it has repurchased for cash all of its Liquid Yield Option Notes due 2021 (Zero Coupon -- Senior) (the "Notes").
68% Trust Originated Preferred Securities (the "TOPrS") and Motorola has called for redemption of all outstanding: (i) Liquid Yield Option Notes due September 7, 2009 (Zero Coupon-Subordinated) (the "2009 LYONs") and (ii) Liquid Yield Option Notes due September 27, 2013 (Zero Coupon-Subordinated) (the "2013 LYONs").

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