Convertible notes

BIG BWACULL · 28 May 2007

Am i correct in saying that convertible notes are tradeable like shares?
are these notes transferrable? i.e Could i purchase these notes as i am entitled to them and then for taxational purposes transfer them to some one else? And lastly are convertible notes worthwile investing in, these in particular give 10% per annum, conversion or not by 2010? Any Info on convertible notes would be appreciated, Oh they are fully underwritten.Thanks

BIG BWACULL · 29 May 2007

Is this another way of borrowing money without diluting shares?

markrmau · 29 May 2007

I am not am expert in convertible notes, but here is my understanding. To clarify, look at an announcement regarding the issue of C.N.s. (eg URL, 15/05/06).

1. You are pay money for the 'note' which pays an interest rate (eg 5%).
2. You may convert at any time for shares at preset amount per share (eg URL=18c)
3. At end of term you usually convert for either discount to VWAP price, or coupon convert price - whichever is lower.

So no, this will dilute shares.

HTH

BIG BWACULL · 29 May 2007

markrmau said:
I am not am expert in convertible notes, but here is my understanding. To clarify, look at an announcement regarding the issue of C.N.s. (eg URL, 15/05/06).

1. You are pay money for the 'note' which pays an interest rate (eg 5%).
2. You may convert at any time for shares at preset amount per share (eg URL=18c)
3. At end of term you usually convert for either discount to VWAP price, or coupon convert price - whichever is lower.

So no, this will dilute shares.

HTH

Thanks mark, Any others know much about these?

Convertible notes

BIG BWACULL

BIG BWACULL

markrmau

BIG BWACULL

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