This excerpt taken from the CEPH 8-K filed Dec 20, 2006.
Item 8.01 Other Information
As described above, on December 19, 2006, the Company exchanged $100 million aggregate principal amount of 2015 Notes held by a holder for a cash payment totaling $73.7 million and the issuance of 89,419 shares of the Companys common stock, net of shares received as a result of the concurrent termination of the portion of the Note Hedge described in Item 1.01 above. The Warrants related to the $100 million aggregate principal amount of 2015 Notes described in Item 3.02 above remain outstanding. The total number of Warrants related to the 2015 Notes remains at 19,700,214 shares of the Companys common stock at a strike price of $67.92.
The Company will recognize debt exchange expense of $15.2 million (pre-tax) in its fourth quarter 2006 financial results relating to the exchange described above in accordance with Statement of Financial Accounting Standard No. 84, Induced Conversion of Convertible Debt.
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.