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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Nasdaq:AMGN), the world's largest biotechnology company, today announced that it has commenced an exchange offer under which Amgen is offering to exchange new Zero Coupon Convertible Notes due 2032 (the "New Notes") for all of its $2,359,102,000 principal amount at maturity of currently outstanding Liquid Yield Option Notes due 2032 (the "Old Notes").
Upon completing the pending divestitures, SPX's estimated debt of $800 million will consist chiefly of $657 million of liquid yield option notes (LYONs).
625% convertible debentures - - 7,306 7,306 Liquid Yield Option Notes - - - 5,228 Weighted-average common shares outstanding, plus impact from assumed conversions 186,813 186,813 200,567 205,795 Basic earnings (loss) per share from continuing operations $(0.

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