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Equity Note

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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.


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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.
s (HIG) $300 million equity notes offering because of HIG's excellent franchise position in the property/casualty and asset accumulation businesses and the strength and diversity of its earnings.
Equity Note Early Redemption Offer The Equity Note Early Redemption Offer announced in March has been successfully completed with 60% of the Notes being tendered.
 
 
 
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