equity note

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Equity Note

A medium-term debt security that automatically turns into common stock at maturity. That is, rather than receiving back the principal, the holder exchanges the equity note for common stock. Before maturity, the equity note pays coupons like an ordinary debt security and has a higher priority than common stock in the event of the issuer's liquidation. An equity note combines the guaranteed return of a bond or other debt security with the potential for a higher return that comes with holding common stock.

equity note

Intermediate-term debt that is automatically converted into common stock at maturity.
References in periodicals archive ?
For the combined offering of the new shares and the convertible equity notes [there was] a 1.
8 bln euros via a rights offering of shares and equity notes and the sale of a stake in its Turkish unit Finansbank.
Eurotunnel is pressing ahead with efforts to restructure its finances with a plan to redeem equity notes early.
The deal would consist of equity rights and convertible equity notes.
has assigned an "aa-" senior debt rating to The Chubb Corporation's (Warren, NJ) (NYSE: CB) $400 million ($460 million if the over-allotment is exercised) of equity notes.
In 2002, liquidity somewhat improved as partial funds from its equity notes offering were maintained at the holding company for added flexibility.
17,850,000 class C structured equity notes downgraded to
Liquidity somewhat improved in 2002 as partial funds from the company's equity notes offering were maintained at the holding company for added flexibility.
s (HIG) $300 million equity notes offering because of HIG's excellent franchise position in the property/casualty and asset accumulation businesses and the strength and diversity of its earnings.
At the end of 2003, the remaining pound sterling252 million of Equity Notes will convert to Eurotunnel units.
Alternative investments comprise hedge funds, private equity/venture capital and managed futures funds, while structured products include hedged stock positions and guaranteed equity notes.
Eurotunnel, the operator of the high-speed transport system linking the UK to Continental Europe through the Channel Tunnel, today announced the result of the Deferred Interest Purchase Offer in respect of the Equity Notes as of the Early Tender Date.