Convertible Question
How does an out of the money convertible note that is due soon, and the issue of dilution cause issues for a company?
Any examples off hand of this?
Trending Content - Investment Banking Forum
| +183 | Evercore > Goldman and I don’t think it’s particularly close anymore | 65 | 6h |
| +157 | Article: Why UBS's Asian M&A bankers are thriving and UBS's American M&A bankers are not | 17 | 1d |
| +87 | UBS Offer Day | 30 | 1d |
| +86 | Santander IB? | 10 | 3d |
| +71 | I hate Wells Fargo | 19 | 1d |
| +67 | Think Twice before Recruiting for HOUSTON IB!! | 36 | 1h |
| +51 | No return offer - feeling like a failure is an understatement | 20 | 19h |
| +49 | How cooked am I as an incoming WF IB SA 2027? | 17 | 21h |
| +46 | WF Return offers | 28 | 2d |
| +40 | 2026 Investment Banking Return Offer Climate | 25 | 1d |
Career Resources
Well if the noteholders aren't going to be converted into equity holders, the company is going to have to pay back the principal at maturity. In this case, it would not dilute existing equity holders. If it's in-the-money and economically beneficial for the holders, they will convert into equity and dilute existing owners.
Thanks
Nemo repellendus nemo quia. Enim quod similique error et et dolore id. Maxime consequatur sunt minus placeat ut veritatis.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...