Last month I suggested—as strongly as I could—that Broadsoft should issue a new convertible bond given the valuation of its existing one. I explained that over the life of the existing bond, while the underlying stock had fallen (as of April) by about 25%, the convertible had actually gained by 4% even before coupon income. Since I wrote the article on April 1st, some readers may have thought that the bonds couldn’t have outperformed the stock by that much, and that it must have been some kind of April Fools’ Day joke. I assure you it was not—Forbes has a no-tolerance policy on such pieces.
|