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The conversion price will be $8.50 a share.
The conversion price on that issue would be reduced to $5.50 under this plan.
As a minimum we suspect 915p would be required (the conversion price of the convertible).
In other words, it is selling for more than twice the conversion price of the proposed note issue.
Or they can convert the debentures into stock before that maturity date, with the conversion price rising every year.
Nor have they provided terms for the dividend or the "modest discount" to the conversion price of their investment.
The bonds can be converted to common shares at a specified price, known as the conversion price.
The 20-year bonds carry a 3.125 percent coupon and a $21.75 conversion price, a 26percentt premium.
Even if we assume that the company will get the higher conversion price, Lehman will have reaped $6 billion by issuing 203.4 million shares.
Details about the investment, including the interest rate to be paid on the debt and the conversion price for the shares, were not disclosed.
When it must be converted in three years, the conversion price will be $28 to $33.04, depending on where the common is then.
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