mandatory convertible security

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.

mandatory convertible security

A debt security that automatically converts to another security, generally shares of common stock, on a specified date. A mandatory convertible differs from most convertible securities in that it does not permit the owner to choose whether or not to convert.
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0909 common shares per mandatory convertible security and the minimum conversion rate was set at 7.
s (BKUNA) $160 million senior notes, offered with a forward purchase contract as 'equity units' to synthetically create a mandatory convertible security.
To offset the statutory capital impact of the reinsurance transaction, UNM has arranged for a $300 million mandatory convertible security offering in a private placement.
The acquisition will be entirely financed through the issuance of a mandatory convertible security that will be converted into AXA group new shares.

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