RE:RE:That $93m derivative loss in the qtr.The loss is just the unrealized mark to market on the convertible debt structure. When the bonds mature, the Company can issue the number of shares in settlement of the bond at the strike price of the embedded option assuming that the share price is higher than the conversion price. They can settle in cash if it is lower (cash of $575M) or the cash equivalent of the conversion price if it is higher.
Example:
Conversion price $10
At settlement, share price is $9. Pay $575M in cash.
At settlement share price is $20. Issue 57.5M shares to settle the debt. Or pay cash equivalent of $20 times 57.5 million shares to settle the debt.
No free lunch.