Assuming full conversion of the Convertible Bonds
at the initial Conversion Price of HK$160 per Share, the Convertible Bonds
will be convertible into approximately 24,228,437 Shares, representing approximately 2.
According to a mutual fund survey conducted by Value Line, convertible bond
funds have averaged a 12% total return the last five years on an annualized basis, compared with 13% for growth and growth-income funds, 12% for income funds and 15% for the S&P 500.
Among those firms that issue convertible bonds
, higher-quality firms set low conversion ratios (high conversion premiums), while lower-quality firms within this group set high conversion ratios (or low conversion premiums).
The investment value of a convertible bond
remains stable over a wide range of stock prices and drops only as the stock price approaches zero, which means the company is nearing bankruptcy.
For example, an enterprise might issue convertible bonds
with a face amount of $50,000,000 and a coupon rate, payable semi-annually, of 7.
Our convertible bond
trading platform has continued to gain market share, create innovative structures and profitably weather the most challenging of times for the asset class," said Weinstein.
ii) a mixed cash and exchange offer for all Convertible Bonds
issued prior to February 6, 2006.
are hybrid instruments with characteristics of both traditional bonds and equities.
In connection with this arrangement, the seller of the derivative has informed Navistar that it intends to purchase Navistar common shares in open-market transactions upon completion of the distribution of the convertible bonds
MTR Securities is a globally focused fixed income firm recognized for providing institutional clients worldwide with independent research and trading expertise in corporate high-yield and convertible bonds
, distressed bank loans and emerging market debt.
Among those who suggest that they really like convertible bonds
, there's no one who says, convincingly, that he's getting a bargain when he buys them," he noted.
The company will apply for the admission to listing on Nasdaq Europe of all new shares and the new shares that can be issued upon conversion of the convertible bonds