Ashford's new subsidiary will issue USD 230m of participating convertible preferred securities with a dividend rate of 6.625% with a conversion premium
85% above Ashford common stock price on 17 September and 916,500 shares of its nonvoting common stock (assuming a USD 100 stock price 54% above Ashford common stock price) to the Remington sellers.
With the Agency still eyeing land purchases coupled with hefty land conversion premium
payments over the next two years, debt requirements are anticipated to rise further even after having jumped over the past few years.
Consequently, businesses that continued to use the Syrian currency to sell goods added a "war conversion premium
," which meant artificially high prices that added to the burden as consumers suffered from scarcities as far as basic food items were concerned.
The consequences of issuance such as conversion premium
, equity dilution or changes in maturity are also unknown.
The Bonds are expected to have an annual coupon in a range of 2.75% and 3.375% payable semi-annually in arrear and to have a conversion premium
of 30% to 35% over the volume weighted average price of the Issuer's shares on the Oslo Stock Exchange (converted at the prevailing USD:NOK spot rate at closing of the market on 17 January 2014) between opening and closing of the market on 17 January 2014.
Furthermore, conversion price is always fixed above current share price at the issue (so-called conversion premium
According to the company, the initial conversion price of the notes will be USD5.36, which reportedly represents a conversion premium
of approximately 20% over the last reported sale price of Horizon's common stock on the Nasdaq Global Market on 18 November 2013.
The conversion took place on 16 Apr 2013, with Altimo paying a conversion premium
to VimpelCom of $10.835/share or $1.4bn in total.
The exchangeable bonds, which will be listed in the Singapore Stock Exchange, have a maturity of three years, a coupon of 2 percent per annum and a conversion premium
of 25 percent of the offer price, the company said.
The conversion premium
will be 22.5% over the reference share price of NOK7.5787, which was the volume-weighted average price on the Oslo Stock Exchange in the five days to 14 December.
We now develop the implications of the asymmetric information hypothesis for subsamples of firms issuing putable convertibles based on conversion premium
(i.e., the extent to which the stock price must rise for the conversion option to be in the money).
The company also sold $250 million of mandatory convertible securities, paying 9.5pc per year and with a conversion premium