Convertibles Calendar

JUNE 18 WEEK

PANDA ETHANOL INC. (OTCBB: PDAE): $140 million seven-year convertible senior notes; Morgan Stanley; Rule 144A; coupon may be increased if operational milestones are not met; company may choose to pay the coupon in kind, in which case the principal will accrete at a 7% rate; company may call 25% of the convertibles at any time at a redemption price that varies depending on when the call is made, and the exercising of this option will prevent holders from converting the notes; callable after the third year at a price that will let holders realize a 15% rate of return; all the convertibles are also callable if either six months have lapsed since a qualified public offering or if the common stock is trading at double the conversion price and meets a liquidity threshold. If the notes are called under such circumstances within the first three years, the redemption price will let holders realize a 15% rate of return. After the first three years, a call under such circumstances will pay the principal; Dallas-based ethanol refining company that specializes in using cattle manure as a thermal energy source, said the proceeds of the deal will be used to fund its Yuma ethanol facility and general purposes; pricing June 19 after the close; talked at a coupon of 6% with an initial conversion price of about $5 per share; will be offered at par, but the company will pay $1,500 per note at maturity. The initial conversion price range is about 17% below Panda common stock's closing price of $6 on Tuesday.

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.

MYLAN LABORATORIES INC. (NYSE: MYL): $1.5 billion to $2 billion of common stock and mandatory convertible securities; to refinance debt to fund acquisition of Merck KGaA's generics business; Canonsburg, Pa., pharmaceutical company.

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