Exchangeable


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Related to Exchangeable: Exchangeable bond

Exchangeable

Applies mainly to convertible securities. Means the issuer, if so stated, may substitute a convertible debenture for an existing convertible preferred with identical terms. Most often used when a corporation has an immediate need for equity capital and a low tax rate, and expects either or both conditions to change. This would make the debenture less attractive if the interest tax-deductibility is lost.

Convertible

A bond or preferred stock that may be exchanged for common stock in the company issuing the convertible at a certain ratio and/or a certain price. A convertible security gives the holder a great deal of flexibility. It reduces risk by guaranteeing a coupon payment or dividend while also allowing the holder to take advantage of a potential, larger return through the ability to convert the security. See also: Convertible option.
References in periodicals archive ?
The second question this research addresses is why exchangeable debt is chosen over alternative divestment strategies.
18,995,000 exchangeable class 2-A-3 'AAA'; Outlook Stable;
23,299,000 exchangeable class 3-A-7 'AAA'; Outlook Stable;
38,058,000 exchangeable class 2-A-14 'AAA'; Outlook Stable.
Immediately following the common stock offering and until the exchange of the exchangeable notes takes place, The Allstate Corporation and Allstate Insurance Company will continue to own an aggregate of up to 13.
39,000,000 exchangeable class 6-A-1 'AAA'; Outlook Stable;
321,307,000 exchangeable class 1-A-10 'AAA'; Outlook Stable;
12,497,000 exchangeable classes 1-A-10 'AAA'; Outlook Stable;
1 million units will be issued upon the exchange of the exchangeable notes and the convertible debt, resulting in the issue, following approval of the plan of arrangement, of an aggregate total of 13.
10,051,000 exchangeable classes 1-A-9 'AAA', Outlook Stable;
94 exchangeable preferred stock as such shall cease and the person entitled to receive Datapoint's $1.
QUANEX CONVERTIBLE EXCHANGEABLE PREFERRED STOCK IS PRICED