Amarin Corp Plc (AMRN)

[sts66]

A bit OT, but somebody explain this to me please - AMRN has had multiple convertible notes issued over the years, and has bought some of them back instead of letting them convert - I don't recall what the convert price was, doesn't really matter - EXAS has taken a bath the last two days, and it appears related to up to $1B in converts due 2018 they're issuing. Interest rate on them is only 0.375% (WTF? My bank pays more than that!)- conversion price is ~ $121 - is the only real value in these notes the chance to get shares, which isn't guaranteed (company can buy them back for cash instead like AMRN has done). EXAS also has 0.375% 2027 notes with a conversion price of only $111 - who would buy the new notes, which have a higher conversion price? Hell, who would buy either of these two issues - you're not making a penny in interest compared to other places you could safely park the money, like ultra short term bond ETFs that yield 2.7%-3% with very little risk to principal.


This part of PR for the new notes is confusing, and again, just using EXAS as an example, my question applies to all notes of this nature (some of my other stocks have them too) - first para says the new notes can't be called earlier than a year to maturity, but 2nd para says they're using part of the proceeds to buy back some of it's 2025 convertible notes - how can they do that when the two prior offerings both say they can't do that until the notes are within a year of maturing?

The Notes will mature on March 1, 2028, unless earlier converted or repurchased in accordance with their terms prior to such date, and may not be redeemed by the Company prior to maturity. Prior to September 1, 2027, the Notes will be convertible only upon the occurrence of certain events and during certain periods, and thereafter, until the close of business on the second scheduled trading day immediately preceding the maturity date.

The offering is expected to close on February 27, 2020, subject to customary closing conditions. The Company intends to use the net proceeds of this offering for general corporate purposes, which may include the repayment of debt, working capital and possible acquisitions. In addition, the Company expects to use approximately $150 million of the net proceeds to repurchase a portion of its existing 1% convertible senior notes due 2025.

Link to the 2025 notes - it also says the company may not redeem the notes early:

https://www.sec.gov/Archives/edgar/data/1124140/000104746918004328/a2235966z424b5.htm#aa4

On a side note, EXAS is borrowing a boatload of money to keep themselves afloat - despite what the stock has done previously, it's a money losing company - is this another FOMO stock like TSLA or SPCE? Fundamentals don't support the MC.