What are exchangeable stocks?
Exchangeable Stock means any Capital Stock which by its terms is exchangeable or convertible at the option of any Person other than the Company into another security (other than Capital Stock which is neither Exchangeable Stock nor Redeemable Stock).
How does an exchangeable bond work?
An exchangeable debt is simply a straight bond plus an embedded option which gives the bondholder the right to convert its debt security into the equity of a company that is not the debt issuer. Most of the time, the underlying company is a subsidiary of the company that issued the exchangeable debt.
What is exchangeable bonds with examples?
How Do Exchangeable Bonds Work? For example, let’s consider a Company XYZ bond that is exchangeable into shares of Company ABC at an exchange ratio of 50:1. This means that you could exchange every $1,000 of par value you own of XYZ bonds into 50 shares of ABC stock.
What is the difference between the straight convertible and the exchangeable bonds when use in financing?
An exchangeable bond is different from a convertible bond. A convertible bond gives the holder the option to convert bond into shares of the issuer. The pricing of an exchangeable bond is similar to that of convertible bond, splitting it in straight debt part and an embedded option part and valuing the two separately.
What does exchangeable mean?
Exchangeable, interchangeable apply to something that may replace something else. That which is exchangeable may be exchanged for money, credit, or other purchases to the amount of the original purchase: These dishes are exchangeable if you find they are not satisfactory.
What is an exchangeable unit?
Exchangeable Units means the Class B LP Units which are exchangeable for Units at the option of the holder in accordance with the terms of the Limited Partnership Agreement and the Exchange Agreement.
How do you value exchangeable bonds?
Value of convertible bond = independent value of straight bond + independent value of conversion option.
What is mandatory exchangeable bond?
Key Takeaways. A mandatory convertible is a bond issued by a company which must be converted into shares to common stock on or before a specific date. Traditional convertible bonds allow bondholders the option of converting, while in a mandatory convertible this is required.
What does non exchangeable mean?
; unable to be exchanged
Adjective. nonexchangeable (not comparable) Not exchangeable; unable to be exchanged.
What does refundable mean?
(rɪfʌndəbəl ) adjective. A refundable payment will be paid back to you in certain circumstances. A refundable deposit is payable on arrival.
Is Bipc a limited partnership?
Investors can access its portfolio either through Brookfield Infrastructure Partners L.P. (NYSE: BIP; TSX: BIP. UN), a Bermuda -based limited partnership, or Brookfield Infrastructure Corporation (NYSE, TSX: BIPC), a Canadian corporation.
How do you value convertible debentures?