M2 EQUITYBITES-May 2, 2018-Deutsche Bank prices equity notes
linked to JPMorgan Chase common stock
'For the combined offering of the new shares and the convertible equity notes
[there was] a 1.83 oversubscription rate,' NBG reportedly said.
NBG late on Tuesday announced a plan to raise 2.8 bln euros via a rights offering of shares and equity notes
and the sale of a stake in its Turkish unit Finansbank.
The senior notes are paid from the cash flows before the junior notes and equity notes. In this way, losses are first borne by the equity notes, next by the junior notes, and finally by the senior notes.
Mezzanine notes and equity notes offer yields that are not available in most other fixed income securities.
The key economic consideration for an underwriter that is considering bringing a new deal to market is whether the transaction can offer a sufficient return to the equity note holders.
Eurotunnel is pressing ahead with efforts to restructure its finances with a plan to redeem equity notes early.
Under its latest proposals, the company will offer to redeem the notes early by offering one share for every 1.3 equity notes, which will cut Eurotunnel's interest payment on the notes and cut its total debt.
The provisions treating interest on "equity notes
" as distributions are understood to have been framed in conjunction with advice obtained from the IRS, so that any "debt" in which the creditor could take a position that it represents equity for U.S.
The deal would consist of equity rights and convertible equity notes