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Convertible Debt

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Convertible Debt stories:

Ford to raise $3.3 billion in stock, debt sales
Nov 3rd, 2009 - The Associated Press
DEARBORN, Mich. (AP) -- Ford Motor Co. said Monday it will ask its lenders for extra time to repay at least some of the $10.1 billion borrowed under a line of credit, and will sell about $3.
Ford Moves To Raise $3 Bln And Delay Loan Maturity
Nov 2nd, 2009 - Wall Street Journal
(Updates throughout and adds analyst comment.) DETROIT (Dow Jones)--Ford Motor Co. (F) intends to raise another $3 billion through a stock sale and convertible debt offering as it looks to trim its massive debt burden.
Icahn says purchased $583000 in Lions Gate notes
May 5th, 2009 - Reuters
LOS ANGELES, May 5 (Reuters) - Activist shareholder CarlIcahn has bought $583,000 of Lions Gate Entertainment Corp(LGF.N) convertible notes pursuant to his tender offer for $316million in notes...
Icahn extends offer to buy Lions Gate bonds to May 1
Apr 21st, 2009 - Los Angeles Times
After getting a frosty response from bondholders for his bid to buy up Lions Gate's convertible debt, activist shareholder Carl Icahn has extended his tender offer to May 1. Icahn's offer...
Lions Gate moves defensively against Icahn
Apr 21st, 2009 - Reuters
* Icahn extends tender offer for Lions Gate notes * Icahn attracts $8 million in notes to date * Lions Gate in talks with potential TV Guide partners (Recasts; includes details on TV Guide talks) LOS ANGELES...

Convertible Debt videos from YouTube:

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Long-Term Liabilities -7 Convertible Bonds
Financial Accounting SFCC Fall 2007
2:42
1962 Buick Special convertible
Brilliant red, with red interior, in great shape. Note the aluminum V8 Buick installed in this car..aluminum block and aluminum heads! Evenually they sold the tooling to Rover, and they used ...
3:15
1958 Ford Thunderbird convertible, customized
Beautiful paint on this one, with restrained flames on the hood. Note the nice Tbird wheels. from a later vintage. Air resevoir and batteries in the back suggests that this car can get down ...
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Goldman Sachs To Buy Geely Convertible Bonds
Goldman Sachs to own 30% of China's largest automaker and expects an explosion in China's auto market. (The Trade)

Convertible Debt from WikiPedia:

In finance, a convertible note (or, if it has a maturity of greater than 10 years, a convertible debenture) is a type of bond that the holder can convert into shares of common stock in the issuing company or cash of equal value, at an agreed-upon price. It is a hybrid security with debt- and equity-like features. Although it typically has a low coupon rate, the instrument carries additional value through the option to convert the bond to stock, and thereby participate in further growth in the company's equity value.

From the issuer's perspective, the key benefit of raising money by selling convertible bonds is a reduced cash interest payment. However, in exchange for the benefit of reduced interest payments, the value of shareholder's equity is reduced due to the stock dilution expected when bondholders convert their bonds into new shares.