Pershing’s Bill Ackman entered into total return swaps in Borders (BGP) shares. The seven transactions were done between Jan. 10 and 14th. and the total numbers of shares represented is 1,542,900.
The details:
1. The reporting person, for the account of Pershing Square, L.P. (“PSI”), Pershing Square II, L.P. (PSII), and Pershing Square International, Ltd. (“PSIL”), entered into cash-settled total return swaps with a broker-dealer counterparty for a commission equal to $0.03 per notional share subject to such swaps. The first swap (the “First Swap”) was entered into on January 10, 2008 and expires on August 5, 2009. Under the terms of the swap (i) PSI is obligated to pay to the counterparty any negative price performance under $9.93 for each of the 256,600 notional BGP common shares subject to the swap (the “First Swap Reference Shares”), plus interest, and (ii) the counterparty is obligated to pay to PSI any positive price performance over $9.93 for each of the First Swap Reference Shares, plus any dividends paid during the life of the swap.
2. The second swap (the “Second Swap”) was entered into on January 10, 2008 and expires on August 5, 2009. Under the terms of the swap (i) PSIL is obligated to pay to the counterparty any negative price performance under $9.93 for each of the 343,400 notional BGP common shares subject to the swap (the “Second Swap Reference Shares”), plus interest, and (ii) the counterparty is obligated to pay to PSIL any positive price performance over $9.93 for each of the Second Swap Reference Shares, plus any dividends paid during the life of the swap.
3. The third swap (the “Third Swap”) was entered into on January 11, 2008 and expires on August 5, 2009. Under the terms of the swap (i) PSI is obligated to pay to the counterparty any negative price performance under $9.29 for each of the 268,474 notional BGP common shares subject to the swap (the “Third Swap Reference Shares”), plus interest, and (ii) the counterparty is obligated to pay to PSI any positive price performance over $9.29 for each of the Third Swap Reference Shares, plus any dividends paid during the life of the swap.
4. The fourth swap (the “Fourth Swap”) was entered into on January 11, 2008 and expires on August 5, 2009. Under the terms of the swap (i) PSIL is obligated to pay to the counterparty any negative price performance under $9.29 for each of the 366,526 notional BGP common shares subject to the swap (the “Fourth Swap Reference Shares”), plus interest, and (ii) the counterparty is obligated to pay to PSIL any positive price performance over $9.29 for each of the Fourth Swap Reference Shares, plus any dividends paid during the life of the swap.
5. The fifth swap (the “Fifth Swap”) was entered into on January 14, 2008 and expires on August 5, 2009. Under the terms of the swap (i) PSI is obligated to pay to the counterparty any negative price performance under $9.36 for each of the 126,461 notional BGP common shares subject to the swap (the “Fifth Swap Reference Shares”), plus interest, and (ii) the counterparty is obligated to pay to PSI any positive price performance over $9.36 for each of the Fifth Swap Reference Shares, plus any dividends paid during the life of the swap.
6. The sixth swap (the “Sixth Swap”) was entered into on January 14, 2008 and expires on August 5, 2009. Under the terms of the swap (i) PSIL is obligated to pay to the counterparty any negative price performance under $9.36 for each of the 178,703 notional BGP common shares subject to the swap (the “Sixth Swap Reference Shares”), plus interest, and (ii) the counterparty is obligated to pay to PSIL any positive price performance over $9.36 for each of the Sixth Swap Reference Shares, plus any dividends paid during the life of the swap.
7. The seventh swap (the “Seventh Swap”) was entered into on January 14, 2008 and expires on August 5, 2009. Under the terms of the swap (i) PSII is obligated to pay to the counterparty any negative price performance under $9.36 for each of the 1,736 notional BGP common shares subject to the swap (the “Seventh Swap Reference Shares”), plus interest, and (ii) the counterparty is obligated to pay to PSII any positive price performance over $9.36 for each of the Seventh Swap Reference Shares, plus any dividends paid during the life of the swap.
Disclosure: Confused as to what he sees…..
