The securities will be redeemed by CNO at a redemption price, payable in cash, equal to the accreted value
of the securities (calculated in accordance with the indenture governing the securities), plus accrued and unpaid interest to, but not including, the redemption date.
If the SRI project successfully achieves the targeted indicators, investors will not recover their original investment amount; the nominal value or accreted value
(where applicable) of the SukukIhsan will be mandatorily reduced in accordance with a pre-defined formula.
2m convertible preferred shares with a fully accreted value
of CAD80m at 30 April 2009 and accounts payable and accrued liabilities of CAD16m.
The accreted value
is the issue price plus the economic accrual of the discount.
Bryant cautions the investor to be aware that although the buyer of the zero coupon bond does not receive interest payments yearly--as they would with a regular bond (coupon)--the buyer is responsible for paying taxes on the accumulation of interest on the bond, an amount known as the accreted value
of the bond.
Upon conversion, the issuer must pay cash for the obligation's accreted value
(the debt's carrying amount at conversion) and may satisfy the conversion spread (the excess conversion value over the accreted value
) in either cash or stock.
If the SRI project successfully achieves the pre-agreed outcome, investors will not recover their original investment amount; the nominal value or accreted value
(where applicable) of the Sukuk Ihsan will be mandatorily reduced in accordance with a pre-defined formula.
The outstanding convertible note had an accreted value