RE:Smart move Obviously, the share price will likely see some near term weakness. Why? This is a marketed deal that will be priced "in the context of the market". AC management will likely be doing a very short road show to meet with institutions. once they build a book to cover the allotted amount, they will price and announce a closing date. If it doesn't market well, it can be pulled.
so if you are a potential institutional investor, you wouldnt buy the common in the broader market today but wait for the deal price, which will be at a modest discount. So this is known as an overhang, exacerbated by accounts shorting AC common who want to arb the convertible note.
Keep this in mind as you see volatility in the share price .