M&A Financing: Convertible Securities

Does anyone have any experience with M&A transactions involving convertible securities? Or perhaps examples of transactions in the past that have been financed partly or entirely through converts?

What is the dilution effect of converts for the NEWCO? I would assume it would depend on the excercise price of the securities, but I am not sure if there is more to it than just that. How are converts usually priced in these situations compared to common stock and what is the general market effect of such transactions?

I would be very curious to hear your side on this.

Thanks

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