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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89 per Common Share (representing a conversion premium of approximately 40% to the reference price of C$16.
5% conversion premium over the last reported sale price of USD 62.
The consequences of issuance such as conversion premium, equity dilution or changes in maturity are also unknown.
375% payable semi-annually in arrear and to have a conversion premium of 30% to 35% over the volume weighted average price of the Issuer's shares on the Oslo Stock Exchange (converted at the prevailing USD:NOK spot rate at closing of the market on 17 January 2014) between opening and closing of the market on 17 January 2014.
36, which reportedly represents a conversion premium of approximately 20% over the last reported sale price of Horizon's common stock on the Nasdaq Global Market on 18 November 2013.
625% were priced at a conversion premium of 20% over the reference stock price of PHP651.
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.
The convertible bonds with high (low) conversion premium behave more like straight debt (equity).
The bonds will mature in five years and three months, with a conversion premium of 25%-30% and a yield to maturity of 2.