16-08-2014, 05:27 PM
I just chanced upon this interesting article which suggests so.
Nuance’s $250 million 2027 Convertible Notes redemption is either a signal of an imminent buyout or a red herring.
If one read between the lines and disregarded the noise during Monday's earnings, a very interesting event was announced which could signal a buyout is on the horizon: Nuance is calling back all of their $250 million, 2027 Convertible Notes (at 2.7%).
It is my belief that the redemption of these notes is in anticipation of a buyout in the near future. It would help the acquirer save over $50 million from the convertible liability if the company is bought for over $23.36 per share.
A buyout offer is on the table and calling back the debt will save the future acquirer ~$50 million from a debt to share convert.
http://seekingalpha.com/article/2418935-...ption-baby
Nuance’s $250 million 2027 Convertible Notes redemption is either a signal of an imminent buyout or a red herring.
If one read between the lines and disregarded the noise during Monday's earnings, a very interesting event was announced which could signal a buyout is on the horizon: Nuance is calling back all of their $250 million, 2027 Convertible Notes (at 2.7%).
It is my belief that the redemption of these notes is in anticipation of a buyout in the near future. It would help the acquirer save over $50 million from the convertible liability if the company is bought for over $23.36 per share.
A buyout offer is on the table and calling back the debt will save the future acquirer ~$50 million from a debt to share convert.
http://seekingalpha.com/article/2418935-...ption-baby