Cephalon Convertible Notes On May 21, 2009, biopharmaceuticals maker Cephalon issued $350 million in convertible senior subordinated notes due in 2014 (see Exhibit 10). Concurrently, the company issued $300 million in common stock. According to the company, the notes would be "subordinate to existing and future senior indebtedness, equal to existing and future senior subordinated indebtedness and senior in right of payment to existing and future subordinated indebtedness of Cephalon."8 The notes were not expected to be listed on any exchange, though some of the underwriting group might (or might not) make a market in them. Approximately $72 million of the proceeds of the convertible note issue was to be used in conjunction with a hedging transaction arranged by the London branch of Deutsche Bank AG. The remainder of the proceeds would be used for general corporate purposes.