Radian and an affiliate of an underwriters (the "counterparty") will enter into a capped call transaction as decided previously related with the over-allotment exercise for the USD400m of the notes on the same terms, to offset the potential dilution
to the company's common stock and/or any potential cash payments in over the total converted notes up to a stock price of about USD14.11 per share, the initial cap on the counterparty's delivery obligation under the option.
The capped call transactions are expected generally to reduce potential dilution
to Aerie common stock upon conversion of the notes and/or offset the potential cash payments that Aerie could be required to make in excess of the principal amount of any converted notes upon conversion thereof, with such reduction and/or offset subject to a cap based on the cap price.
- Sayona to retain a 49% stake, subject to possible future potential dilution
in line with any increased spending by Altura, should Sayona not wish to participate.
The future outcomes that relate to forward-looking statements may be influenced by many factors, including, but not limited to: risks of future legal proceedings; regulatory approval of the issuance of securities, and potential dilution
Beginning in January 2019, the Company expects to repurchase $50M additional shares via a 10b5-1 program, which is expected to more than offset potential dilution
from compensation plans.
"Despite ADIB -- UAE unwillingness to raise its stake in ADIB -- Egypt in the short term, we [Pharos] updated ADIB -- Egypt's FV to EGP 19.50 to account for the potential dilution
effect and other several positive developments," the research company added.
The downside is potential dilution
These convertible note hedge transactions will cover, subject to customary anti-dilution adjustments, the same number of shares of common stock as those underlying the notes, and are expected to reduce the potential dilution
to ON Semiconductor's common stock and/or offset potential cash payments upon conversion of the notes.
In a separate SEC action today, the Commission amended its existing rules to allow open-ended funds--but not money market funds or ETFs--to use Cyswing pricing,' which the SEC defined as "adjusting a fund's net asset value to pass on to purchasing or redeeming shareholders costs associated with their trading activity." The benefit of such swing pricing is to mitigate the potential dilution
of investors' shares in a fund after other investors have redeemed a fund's shares, and to "better manage fund liquidity."
The plan calls for an exchange of $2.1 billion of loan claims for a new $600 million new first lien term loan and 100% of the new common equity, subject to potential dilution
from a management incentive plan, and a cash distribution.