FASB 84 1985

• Induced Conversions of Convertible Debt
• Amends APB 26
• FASB summary
• FASB status

EITF 00-19

• SEC disclosure issues 12.01.05

Use of hedges

• IRS can re-characterize to require OID treatment

• By integrating convertible debt with hedge
  to create a synthetic debt instrument
  subject to original issue discount

• Simpson Thacher mailing  8.25.06

Exchange offer for convertible preferred stock

Announced 12.01.05

Schedule TO filings 12.01.05

Interim Communications

3% convertible contingent debt

• $700 million offering
• Prospectus 12.09.05

Exchange offer for $160 million of convertible notes

• New convertible notes with alerted terms
• Motivated to address accounting issue
• Incentive payment of $2.50 per $1000
• Deal summary

Announced 11.15.04

Completed 12.15.04

Deal terms

Form S-4 filings

Schedule TO filings

SEC comment letters

SEC_CODE_REF_0090001192884

Interim communications

Exchange offer for $345 million of
6.75% Premium Income Equity Securities^SM (PIES)

Announced 6.02.05

Deal terms

Form S-4 6.02.05

Schedule TO 6.02.05

$408.5 million private placement

Private placement documents

1.25% Convertible Senior Notes Due 2023

$ 690 million debt offering
Ropes & Gray

Announced 9.26.03

SEC Filings

Floating Rate Convertible Senior Debentures due 2023

$ 1.2 billion convertible debt offering
Cravath

Announced 9.26.03

SEC Filings