Mandatory Convertible

(redirected from Mandatory Convertible Securities)
Also found in: Acronyms.

Mandatory Convertible

A bond that must be converted into common stock in the company issuing it on or before a certain date. An advantage of a mandatory convertible to the investor is the fact that it guarantees a certain return up to the conversion date, after which there is no guaranteed return but the possibility of a much higher return. A publicly-traded company issues mandatory convertibles when it needs to raise the capital provided by issuing stock, but when doing so would put a strain on the price of existing shares.
References in periodicals archive ?
In addition, holders of FCA mandatory convertible securities are entitled to receive 0.
BANKING AND CREDIT NEWS-December 11, 2014-FCA prices offering of common shares, mandatory convertible securities
Summary: Ageas has previously communicated on its claim against Fortis Capital Company Limited ("FCC") and on a possible claim in respect of Mandatory Convertible Securities ("MCS")*.
GM is not expected to issue new common stock in the IPO but plans to sell about $3 bln in mandatory convertible securities that convert into shares in the future, a person familiar with the plan previously told Reuters.
and to distribute that ownership interest to holders of FCA shares and mandatory convertible securities, as further described in the EGM documentation.
M2 EQUITYBITES-December 11, 2014-FCA prices offering of common shares, mandatory convertible securities

Full browser ?