Get Subscription Form For Conversion Of Convertible Bond KV 1 - Crownenergy

Convertible notes will convert into shares (or be subject to repayment) at predetermined trigger events. These trigger events are usually: the maturity date (when the loan amount must be repaid or converted if another trigger event has not occured);

Conversion value is the amount an investor would received if a convertible security is changed into common stock. This value is arrived at by multiplying the conversion ratio (how many shares received per bond) by the market price of the common stock.

The conversion premium is the premium the bondholder will have over the conversion value. If the bond is currently selling for $1,200, then the conversion premium can be calculated as $1,200 - $1,000 = $200.

The conversion period will frequently be from a date 40 days after the date of issue until a date just before any date fixed for redemption of the bond. For debt instruments that convert to equity on a regulatory trigger, see contingent convertible bond.

The conversion premium (or preference) is the premium that is paid, usually in the form of equity, to the investor when their convertible debt investment “converts” to equity at a subsequent round of financing.

Convertible bonds give investors the option to convert the bond to common stock at their discretion. As a result, convertible bonds offer higher returns than common stock but lower returns than non-convertible corporate bonds. Corporate bonds are essentially IOUs. Investors lend money to a company, which issues a bond.

A convertible bond pays fixed-income interest payments, but can be converted into a predetermined number of common stock shares. The conversion from the bond to stock happens at specific times during the bond's life and is usually at the discretion of the bondholder.

In finance, a convertible bond, convertible note, or convertible debt (or a convertible debenture if it has a maturity of greater than 10 years) is a type of bond that the holder can convert into a specified number of shares of common stock in the issuing company or cash of equal value.