Mandatory Convertible

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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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In 2015, the company connected over 15,000 refrigerated tonnes (RT) to customers in key markets across the GCC, while bringing to a successful conclusion the repurchase of 28 per cent of the outstanding mandatory convertible bonds held by its bondholder.
Under the terms of the agreement with Nordic American Tankers, Gulfnav will issue Mandatory Convertible Bonds (MCBs) with a face value of Dh37.
An aggregate issue size of $125 million was raised through a wholly owned overseas subsidiary of Renaissance, the proceeds will be used to finance the repurchase of Renaissance's mandatory convertible bonds.
For the year 2014, the bank will pay 25 per cent cash dividend, 15 per cent in the form of mandatory convertible bonds and 5 per cent as bonus shares.
Upon completion of the proposed transaction, Vivendi is expected to hold 15% of the TIM post-merger capital (which Telecom Italia will continue to control as it will retain approximately a 60% holding) and approximately 20% of the ordinary share capital of Telecom Italia (calculated on a fully diluted basis, assuming the conversion into Telecom Italia shares of the Mandatory Convertible Bonds, issued by Telecom Italia Finance S.
Bank Muscat's board has proposed a 40% dividend for 2013 comprising 25% in cash and 15% in the form of mandatory convertible bonds.
The dividend would be offered 25 percent in cash and 15 percent in mandatory convertible bonds.
s (AngloGold) subsidiary, AngloGold Ashanti Holdings Finance plc (Ashanti Holdings), notified noteholders of settlement terms of 6% mandatory convertible bonds due 2013.
5 billion of mandatory convertible bonds under the structure of the deal, the daily said citing sources.
It also issued planned mandatory convertible bonds of 2.
The amount also includes the weighted-average amount of shares of common stock convertible associated with the mandatory convertible bonds based upon the average price of our common stock during the period.
Bondholders unanimously approved the Scheme for repurchase of 423,141,678 Mandatory Convertible Bonds (MCBs) of OMR 43,160,451 issued in 2012, subject to the availability of financing.

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