Amarin Corp Plc (AMRN)

[HDGabor]

It’s more than interesting, it’s strange. At first sight it’s so good for the holder. What is the reason behind this? My view that the new conditions are worse. Why the Company (have to) did it?

Key changes (2012 conditions)

The 2014 Notes will be exchangeable into American Depositary Shares of Amarin ("ADSs") at the option of the (Company) holders at an initial exchange rate of (113.4752) 384.6154 ADSs per $1,000 principal amount of 2014 Notes (equivalent to an initial exchange price of approximately ($8.81) $2.60 per ADS), subject to adjustment in certain circumstances.

Reworded of 10-Q :

If the (Company) holder elected physical settlement, the Notes would initially be exchangeable into (17,021,280) 57,692,310 ADSs. Based on the closing price of the Company’s stock at March 31, 2014, the principal amount of the Notes would exceed the value of the shares if converted on that date by ($119.2) $45.6 million.

Conclusion: they have to give more ADR (+40,7 M) and the exchange will be the holder's choice instead of the Company.