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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The source on Wednesday confirmed that was still the case and that the mandatory convertible securities will be the only new shares issued in the IPO.
The mandatory convertible securities were sold to the public at 100% of the notional amount of U.
LLC are acting as joint book-running managers of the mandatory convertible securities offering.
5 billion in aggregate principal amount of mandatory convertible securities are expected to be offered in an SEC-registered offering to U.
Gabelli Asset Management further announced that its Board of Directors authorized the repurchase of additional shares of its mandatory convertible securities bringing its total authorization up to $25 million.
In order to maintain its current debt leverage ratio, the Company will reduce its outstanding debt by an amount equal to the debt issuance during the first quarter of 2006 by participating in the remarketing of its mandatory convertible securities in February, 2006.
NYSE: GBL) issued 1,517,483 shares of class A common stock and received proceeds of $70,567,500 on February 17, 2005 in settlement of the purchase contracts issued pursuant to its mandatory convertible securities.
The issuance of $400 million of common stock and $500 million of mandatory convertible securities.
NYSE: GBL) announced today that it will issue approximately 1,517,000 shares of class A common stock on February 17, 2005 in settlement of the purchase contracts issued pursuant to its mandatory convertible securities.
MET will likely finance the cash portion through a combination of debt securities, mandatory convertible securities and cash on hand, as well as through the potential sale of up to $3 billion in certain assets.
NYSE: AMG) announced that, as required by the terms of the forward equity purchase contract component of the mandatory convertible securities issued in 2001 (the "2001 PRIDES"), the holders have satisfied their obligations to purchase shares of AMG Common Stock.

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