Therefore, our results suggest that agency conflicts between bondholders and stockholders and information asymmetries between incumbent stockholders and new investors both play a prominent role in a firm's decision to issue convertible debt
but not for the same set of firms.
holders of EuroSite Power have converted approximately $3.
Non-cash convertible debt
discount related to change in accounting for an outstanding convertible subordinated note
When does it make sense to escalate the investment, or convert warrants or convertible debt
to a majority equity position?
Holders of a contingent convertible debt
instrument, however, must accrue OID into income at the higher yield without receiving cash payments, regardless of their accounting method.
The primary objectives of this paper are to update several widely cited, but dated, studies in order to understand why firms have issued convertible debt
in recent years; and to explore the relationship between observed market reactions to the use of convertible debt
and the stated motivations for its use.
14, Accounting for Convertible Debt
and Debt Issued with Stock Purchase Warrants.
successfully closed the transactions contemplated by a convertible debt
securities purchase agreement on February 24, 2010, for approximately $3 million.
Our team also negotiated a settlement with the previous owners of one of our communications subsidiaries that resulted in reducing the preferred convertible debt
instrument from $9 million to $4.
The gain on derivative instruments of approximately $2,325,800 for the year ended September 30, 2006 was the result of several factors: 1) a decrease in the value of the stock between the date of the issuance (August 2006) of the Series K convertible debt
and September 30, 2006 resulted in the biggest part of the gain (approximately $2,311,000), 2) reclassification to equity of all previous derivative instruments (approximately $13,300), and 3) expiration of the Series E warrants (approximately $1,500).
That makes the sale of convertible debt
cheaper, since investors will take a lower interest rate if they believe they have a lot of upside potential in the stock.
Advant-e Corporation (BULLETIN BOARD: AVEE) , a provider of Internet-based business-to-business electronic commerce services, today announced that one of the largest investors in its 15% convertible debt
has opted to convert $250,000 into Advant-e common stock according to the terms of the September 27, 2001 agreement at $1.