Mandatory Convertible

Mandatory Convertible

A bond that must be converted into common stock in the company issuing it on or before a certain date. An advantage of a mandatory convertible to the investor is the fact that it guarantees a certain return up to the conversion date, after which there is no guaranteed return but the possibility of a much higher return. A publicly-traded company issues mandatory convertibles when it needs to raise the capital provided by issuing stock, but when doing so would put a strain on the price of existing shares.
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Morgan is assisting Ithmaar Bank with its capital-raising plans for the mandatory convertible sukuk.
18 (BNA) -- ITHMAAR BANK PLANS TO RAISE UP TO 500 MILLION DOLLARS THROUGH A COMBINATION OF A RIGHTS ISSUE, A MANDATORY CONVERTIBLE SUKUK AND AN EQUITY LINE OF CREDIT, OFFICIALS ANNOUNCED YESTERDAY AND PUBLISHED BY THE GULF DAILY NEWS.
The company commences today two offerings totaling US$4 billion of common stock and non-cumulative mandatory convertible preferred stock.
Regions Financial Corporation (NYSE: RF) has announced the launch of public offerings of USD1bn of its common shares and USD250m of new mandatory convertible preferred shares.
The mandatory convertible preferred shares will convert into a variable number of shares of Regions common stock on December 15, 2010, unless earlier converted at the option of a holder or Regions.
375% Mandatory Convertible Preference Shares, Series A, which will be payable in cash on April 1, 2015 to holders of record of such mandatory convertible preference shares at the close of business on March 15, 2015.
Pro forma financial effects of Mandatory Convertible Bonds
Bank Muscat, has proposed a 45 per cent dividend for the year 2014, 25 per cent in cash, five per cent as bonus shares and 15 per cent in the form of mandatory convertible bonds.
Muscat: Bank Muscat has proposed a 40 per cent dividend for the year ended 2013 -- 25 per cent in cash and 15 per cent in the form of mandatory convertible bonds.
50% Series A mandatory convertible preferred stock in an amount equal to $1.
para]]Board also declares dividend on Mandatory Convertible Preference Shares[[/para]]
Swiss Re also issued $500 million in mandatory convertible instruments, which in three years will convert to Swiss Re shares, to GE.

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