equity note

Equity Note

A medium-term debt security that automatically turns into common stock at maturity. That is, rather than receiving back the principal, the holder exchanges the equity note for common stock. Before maturity, the equity note pays coupons like an ordinary debt security and has a higher priority than common stock in the event of the issuer's liquidation. An equity note combines the guaranteed return of a bond or other debt security with the potential for a higher return that comes with holding common stock.

equity note

Intermediate-term debt that is automatically converted into common stock at maturity.
References in periodicals archive ?
It said equity note holders stood to gain shares which are listed and more tradeable as well as benefiting more directly from the improved performance of the company.
For the combined offering of the new shares and the convertible equity notes [there was] a 1.
8 bln euros via a rights offering of shares and equity notes and the sale of a stake in its Turkish unit Finansbank.
The deal would consist of equity rights and convertible equity notes.