The interest rate for the convertible is 0.25%. So let’s add that to the 5% cost of capital you came up with. That’s 5.25% total for an unsecured convertible bond. This is still an amazing deal for halo. Please read the press release and understand that the convertible bond purchaser will only achieve the 5% you mentioned if the share price of halozyme is above $77. Otherwise they only get their principle back with the 0.25% interest.
Now that is sign of confidence if I ever saw one. You sell, I’ll buy.