Hybrid Debt

Hybrid Debt

A general term for a type of debt with some features of equity. Two of the most common examples are a convertible bond, which is a bond that the holder may exchange for stocks, and a preferred share, which is stock with a guaranteed dividend. Both of these examples combine the guaranteed payments of a bond with a stock's potential for equity.
Mentioned in ?
References in periodicals archive ?
Vodafone intends to finance the acquisition using existing cash, new debt facilities (including hybrid debt securities) and around e1/43 billion of mandatory convertible bonds ('MCBs').
In a results report last week, the insurer said that as part of reducing hybrid debt by GBP900m, it could cancel preference shares at par value through a reduction of capital.
When it comes to debt, for example, we talk about junior debt, mezzanine debt, hybrid debt, and convertible debt--everything that's non-conventional.
The Index is designed to track floating rate and variable rate preferred securities and hybrid debt securities that are comparable to preferred securities and that, together with the preferred securities, are representative of the general U.S.
"We're saying today we're going to give some of that back to our shareholders in 2017 and we're going to pay down some pretty expensive hybrid debt as well."
On the enhanced regulations and its impact, the survey responses showed a depressed view, with 46 per cent expecting market consolidation, 20 per cent expecting capital raising, 27 per cent expecting other remedial actions and seven per cent expecting issuance of hybrid debt to relieve pressures on capital.
These will include Islamic finance options, structured finance and hybrid debt and equity finance options.
The selection of the biggest market of hybrid debt as the case exemplifying the studied issue enabled broader generalization.
Nobody in this room should be in any doubt that that's going to occur in 2015," managing director David Knox said at an investor briefing.Santos sparked fears it may be facing capital cost blowouts or considering an acquisition when it tapped Deutsche Bank, Goldman Sachs and JPMorgan this week to sound out investors for a hybrid debt raising.Santos' chief financial officer tried to put those concerns to rest, saying the company was being proactive in the face of a 30 per cent slide in oil prices since June and would use any money raised to pay down existing debt."We're facing a volatile, uncertain oil price outlook," CFO Andrew Seaton said.
Fund XVI will continue EIG's business of making hybrid debt and structured equity investments in energy and energy-related infrastructure companies and projects on a global basis, the firm said.
The Spanish group would issue hybrid debt to subscribe part of a capital hike at O2 to fund the deal, the people explained.
Lloyds has already announced plans to raise 5.8 bln pounds in capital and on Thursday said it expects to meet the remaining 2.8 bln requirement through capital generation and won't need to issue hybrid debt or shares.