Pricing announced for deal At $16.25 per common, equates to 30.8 million shares , or 12 percent dilution. On the notes deal (us dollars), conversion price is us$15.35 such that if company elected to redeem all using shares, that would be 42 million shares, or 16 percent dilution. Up to the company whether they redeem using cash or shares, so dilution from notes unknowable here (will be based on where the share price is long into the future).
the mechanics of what happens next:
the bankers oversell the deal by 15 percent , or get short 15 percent. This is 4.6 million shares. This leaves them with a short position to cover and is used to stabilize the share price.
ideally, if the shares trade above offering price and the bankers will exercise the "greenshoe", which allows the bankers to buy the 15 percent from the company at the offering price, closing the short . This will be announced after the fact.
If the shares trade poorly, the banker then goes in and supports the stock at or below the offering price, closing their short and potentially not exercising any of the shoe. Or it could be just a portion of the shoe.
this just allows the bankers to earn their fee and support their clients who have played on the deal while not incurring liability themselves. So total dilution could possibly be up to 15 percent higher , contingent on the next couple of weeks.
so at least for now until deal close, there is support in and around the deal price, to the tune of 4.6 million shares just on the equity component of this deal.