Net debt including out of the money convertible securities?

Hey monkeys,

Reading recently the manual for new analysts at a BB it says the following:

Net Debt = financial debt (short and long-term) + non-convertible preferred stock (at liquidation value) + out-of-the- money convertible securities + capital leases + minority interest – cash and cash equivalents – investment in unconsolidated affiliates if deemed “liquid”

Care to explain why you would include out of the money convertible securities? I understand that preferred stock is some kind of debt due to interest payments being dividends paid somehow.

Thanks in advance!

2 Comments
 

lifeboat, sorry about the lack of response. Maybe one of these topics will help:

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If those topics were completely useless, don't blame me, blame my programmers...

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