conversion premium

Conversion premium

The extent by which the conversion price of a convertible security exceeds the prevailing common stock price at the time the convertible security is issued. In general usage, the conversion premium is the amount by which the convertible security trades above its conversted value. For example, if a $1,000 par bond is trading at $1,100, it is convertible into 50 shares, and the shares are trading at $21, the converted value is 50 X 20.50 = $1,025, and the conversion premium is $75.

Conversion Premium

The amount by which a convertible security is trading above the common stock into which it may be converted. Most convertible securities trade at a conversion premium, though it usually lessens as the common stock increases in price.

conversion premium

The excess at which a convertible security sells above its conversion value. The conversion premium usually declines as a convertible security rises in market price. A bond trading at $1,400 and convertible into 50 shares of common stock with a current market price of $22 each sells at a conversion premium of $1,400 - (50 × $22), or $300.
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The conversion date has been notified as April 16, 2013 and the conversion premium to be paid by Altimo to the Company upon conversion is USD 10.
We now develop the implications of the asymmetric information hypothesis for subsamples of firms issuing putable convertibles based on conversion premium (i.
3 which represents a conversion premium of 20 per cent above the 89.
The debentures are convertible into Frontier common stock at a conversion premium of 25% over the closing price of Frontier's common stock as of the pricing date, subject to adjustment.
25 percent coupon and a 22 percent conversion premium.
The bonds will mature in five years and three months, with a conversion premium of 25%-30% and a yield to maturity of 2.
This conversion premium is the amount by which the market price of a convertible bond exceeds the conversion value, expressed as a percentage, and represents the value of the option to convert the bond into stock.
875% and will have an initial conversion premium in the range of 20% to 26%.
today announced that the determination period for the conversion premium to be paid in connection with the company's conversion offer for its 5% Perpetual Cumulative Convertible Preferred Stock has concluded.
05 per share, which represents a conversion premium of 27% over Thursday's closing price.
This represents a 40% conversion premium based on the average closing price of NT$26.