announced today it intends to offer $100 million of "convertible senior notes" due in 2014. We have not a clue what that means, so we contacted Wedbush Morgan analyst Michael Pachter, who not only is a master of prognostication, but apparently knows quite a fair share about business (for real!). Pachter explains:
- Convertible - "Means that the debt can be repaid with stock at the borrower's option."
- Senior -- "Means that it stands in line ahead of all other debt in the case of bankruptcy -- not likely, but it makes the interest rate lower."
- Note -- "Is debt."