Log On America

This case discusses the potential benefits and costs of issuing floating-priced convertibles, also referred to as "death spirals". These are convertibles where the conversion price is a discount from the market price in a look-back period. The management of Log on America is blaming investment banks and convertible investors for the stock price collapse after the convertible was issued.

Comparing costs and benefits of floating priced convertibles with other methods of financing such as debt, equity and convertibles with a fixed conversion price. Acting as an "expert witness" in the lawsuit between LOA and CSFB: what is the cause of the stock price decline? Valuing floating-priced convertibles under different assumptions about contract design.