Yes, I understand the convertible is debt, and yes it will be repaid with shares in two years. If it is converted by the holders after Sept 2025, you shouldn't be complaining too much because of "certain events", most notably, the PPS that is required for exchange. The notes had an initial exchange rate of $21.21/share and were issued at a starting PPS of $16.01 (the PPS on the day of issue). If you were not here, that was a day the PPS was forced way down giving a great 32% premium between the issue price and the initial exchange rate. So right now, AVID has a great deal paying only 1.25% on the money (some of which retired old, higher interest loans). Note holders only make more than their 1.25% if the PPS is above 16.01, and AVID only "pays extra" if the PPS is above 21.21. Remember, AVID also has capped what they will have to pay at just over $28 PPS using the capped calls they purchased.
This deal was a no-brainer when it was created, and remains a no-brainer, no concern.
AIMHO
FFTT
JBAIN
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