equity note

Equity Note

A medium-term debt security that automatically turns into common stock at maturity. That is, rather than receiving back the principal, the holder exchanges the equity note for common stock. Before maturity, the equity note pays coupons like an ordinary debt security and has a higher priority than common stock in the event of the issuer's liquidation. An equity note combines the guaranteed return of a bond or other debt security with the potential for a higher return that comes with holding common stock.

equity note

Intermediate-term debt that is automatically converted into common stock at maturity.
References in periodicals archive ?
exchanged all of the issued and outstanding shares of common stock of Sonterra O&G, an equity note from Sonterra O&G and a warrant to purchase shares of Sonterra O&G common stock for 21,846,558 shares of the Company's common stock and a warrant to purchase 4,958,678 shares of the Company's common stock.
It said equity note holders stood to gain shares which are listed and more tradeable as well as benefiting more directly from the improved performance of the company.
The Equity Note Early Redemption Offer announced in March has been successfully completed with 60% of the Notes being tendered.
8 bln euros via a rights offering of shares and equity notes and the sale of a stake in its Turkish unit Finansbank.
has assigned an "aa-" senior debt rating to The Chubb Corporation's (Warren, NJ) (NYSE: CB) $400 million ($460 million if the over-allotment is exercised) of equity notes.
The BERGI research program delivers research in the form of Equity Notes, Industry Reports and Research Alerts.
In 2002, liquidity somewhat improved as partial funds from its equity notes offering were maintained at the holding company for added flexibility.
The June 30, 1995 interest payment on the New 10% Notes would be made in common stock using the same highly questionable equity value as would be used to convert the Equity Notes.
17,850,000 class C structured equity notes downgraded to
5108 principal amount of equity notes which, subject to
Liquidity somewhat improved in 2002 as partial funds from the company's equity notes offering were maintained at the holding company for added flexibility.
The total purchase price for Glendale, which includes converting preferred shares, cashing out stock options and extinguishing certain equity notes, is approximately $28 million.