Convertibles Calendar

JUNE 4

AMERICAN ORIENTAL BIOENGINEERING INC. (NYSE: AOB): $125 million of convertible perpetual preferred stock; after market close Wednesday; talked to yield a dividend of 1.5%-2%, up 12.5%-17.5%; Piper Jaffray books, with Oppenheimer and CRT Capital acting as co-managers; $25 million greenshoe; proceeds for working capital, general corporate purposes, repurchases of outstanding capital stock, funding a prepaid forward contract that the company may enter into; and possible acquisitions of and investments in complementary businesses and products; Shenzhen, China-based maker and distributor of pharmaceutical and nutraceutical products for primarily Chinese markets.

NETAPP INC. (Nasdaq: NTAP): $1.1 billion of five-year convertible senior unsecured notes; after the market close Wednesday; coupon talked 1.5%-2%, up 30%-35%; Rule 144A; via Goldman Sachs and Morgan Stanley; $165 million greenshoe; non-callable with no puts; standard dividend and takeover protection; contingent conversion subject to a 130% price hurdle; concurrent $275 million share repurchase; concurrent convertible note hedge and warrant transactions; any remaining proceeds after the stock repurchase and the note hedge transactions will be earmarked for general corporate purposes, including capital expenditures, possible future stock repurchases, working capital and potential acquisitions and strategic transactions; Sunnyvale, Calif.-based data storage company.

ON THE HORIZON

BLACK HILLS CORP. (NYSE: BKH): mandatory convertible securities; proceeds, along with new equity and unsecured debt, to replace bridge facility; bridge facility will be used to fund the Rapid City, S.D.-based diversified energy company's acquisition of Aquila, Inc.'s electric utility in Colorado and gas utilities in Colorado, Kansas, Nebraska and Iowa, along with the associated liabilities, for $940 million.

INTERNATIONAL CONVERTIBLES

WEEK OF JUNE 2

MACQUARIE CAPITAL LOANS MANAGEMENT LTD.: A$600 million of five-year mandatory convertible preference securities; pricing seen following a three-day roadshow beginning May 28; Macquarie Capital Advisers is sole arranger and joint lead manager, with Citigroup, Goldman Sachs JBWere, JPMorgan, nabCapital, UBS and Westpac acting as joint lead managers; to be quoted on the Australian Securities Exchange; proceeds for ongoing funding and capital management strategy; Sydney, Australia-based diversified international provider of banking, financial, advisory and investment services.

SUNCORP-METWAY LTD. (ASX: SUN): A$325 million five-year mandatory convertible preference shares; Citi Global, J.P. Morgan Securities Inc., Macquarie, UBS (joint books); A$75 million greenshoe; offering set to open May 16 and close June 4; non-innovative residual tier 1 capital; proceeds for general corporate purposes, including financing asset growth and repaying existing debt; Brisbane, Australia, finance, insurance and banking group.

ON THE HORIZON

PACIFIC ASIA PETROLEUM INC. (OTC Bulletin Board: PFAP): $75 million of redeemable convertible preference shares; Regulation S; proceeds to fund the purchase of participating interests held by ChevronTexaco in four coalbed methane and tight gas sand resource blocks in China; Hartsdale, N.Y.-based oil and gas company with a specific focus on China.

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