Exchangeable Debt

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Exchangeable Debt

A debt security that the holder may exchange, at a certain price, for common stock in the company other than the one that issued the debt security. The number of shares one receives for each security and the price one pays for those shares are determined when the exchangeable debt is issued. Most of the time, the common stock is in a subsidiary of the company that issued the exchangeable debt. Exchangeable debt is a low-risk investment, but it affords the investor a great amount of leeway because he/she can exchange it for another security with higher risk and a higher return. Exchangeable debt operates like a convertible bond; the main difference is the fact that in a convertible bond the common stock that one may buy is the stock of the company issuing the bond rather than that of a subsidiary.
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Additional information related to the sale of the exchangeable bonds can be found in the company's filing on Form 8-K with the Securities and Exchange Commission.
We are pleased with the successful outcome of this deal and are privileged to have had the opportunity to advise on the intricate structuring of this investment, which involved a strategic combination of exchangeable bonds and convertible bonds, Mark added.
Fortis will distribute approximately 19 million shares of Assurant common stock to the holders of the mandatorily exchangeable bonds.
Japanese regulations mandate that holders of exchangeable bonds be identified as ''potential equity stakeholders'' on a mandatory filing to the ministry concerning holders of large equity stakes.
We have been working on the deal for some time as the structure of exchangeable bonds is quite complicated.
The Issuer has today launched a proposed private placement offering of US$60 million of senior exchangeable bonds (the "Bonds") and the Company, through its wholly owned subsidiary Mandalay Resources Finance Limited (the "Borrower"), intends to borrow the proceeds of the Bond offering from the Issuer under the terms of a loan agreement and related funding agreement (together, the "Loan Agreements") which together mirror the terms of the Bonds.
Telekom Malaysia has also decided to spend up to MYR210 million in Green Packet via newly-issued redeemable exchangeable bonds, which could be converted into Green Packet's stake in Packet One.
Talking to mediamen, he said that including OGDCL exchangeable bonds, shares of KAPCO, HBL, PPL and National Bank would be sold through local stock markets whereas the management control of Heavy Electrical Complex (HEC), National Power Construction Company (Jeddah), NPPC, FESCO and SME Bank would be handed over to the private sector.
Pakistan's Privatisation Commission is looking to issue Equity Linked Instruments, convertible and exchangeable bonds for state owned entities.
Michael Schlitt is one of Frankfurt's leading capital markets lawyers and has broad experience in international equity capital market transactions, particularly IPOs, rights issues, convertible and exchangeable bonds and block trade transactions.
In this case, NPI purchased the exchangeable bonds and had an option to receive cash by redeeming the bonds or to exchange them for Bellsystem24 shares.
ISS also stated with respect to the company's recent issuance of exchangeable bonds (EBs), which has been criticized by the dissidents: "we have concluded that - taking into account that Dong-A does not hold any right to give instructions on how to exercise the voting rights along with the fact that the EB holders are all foreign institutional investors and have no relationship with the company - Dong-A has not issued the EBs to restore the voting rights of the treasury shares and revert them to the company.