The company will receive proceeds from the convertible debt
in seven tranches, with the initial tranche being USD710,000, followed by six subsequent tranches of USD250,000 each.
Jensen and Meckling (1976), Mikkelson (1978), and Green (1984) argue that convertible debt
can be used to protect bondholders against the opportunistic behavior of shareholders.
When does it make sense to escalate the investment, or convert warrants or convertible debt
to a majority equity position?
In this paper, we show that callable convertible debt
is more useful in controlling managerial opportunism than are common debt and equity.
The research documents several results about investor reaction to the announcement of convertible debt
The financial statement restatement is in respect to the accounting treatment specified in FASB Staff Position (FSP) Accounting Principles Board Opinions (APB) 14-1, Accounting for Convertible Debt
Instruments that May be Settled in Cash upon Conversion (Including Partial Cash Settlement) (FSP APB 14-1), accounting guidance now codified as FASB Accounting Standards Codification (ASC) Topic 470-20.
Regenerative therapies company Cytomedix (Other OTC:CMXI) said on Thursday that it has closed the second tranche for gross proceeds of USD26m under its convertible debt
financing with certain investment funds managed by Deerfield Management Company.
The financing has been structured in the form of a one year (non-listed) convertible debt
instrument that is convertible into Pharming shares at EUR0.
is also more widely used than it is with fundamental deals, leading CFOs to fret about paying off PIPE investors before equity holders during insolvency.
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.
continues to be a significant source of capital for U.
A company issues convertible debt
that may be converted into a fixed number of common shares.