Convertible Bonds. Some bonds are convertible or exchangeable into a specific number of another form of security (usually the issuer's ordinary shares) at a specified price or ratio. A company may issue a convertible security that is subject to redemption after a specified date, and usually under certain circumstances. A holder of a convertible bond that is called for redemption would be required to tender it for redemption to the issuer, convert it to the underlying equities or sell it to a third party. Convertible bonds typically pay a lower interest rate than nonconvertible bonds of the same quality and maturity, because of the convertible feature. This structure allows the holder of the convertible bond to participate in share price movements in the company’s shares. The actual return on a convertible bond may exceed its stated yield if the company’s shares appreciate in value and the option to convert to shares becomes more valuable. Convertible bonds typically trade at prices above their conversion value, which is the current market value of the shares received upon conversion, because of their higher yield potential than the underlying shares. The difference between the conversion value and the price of a convertible bond will vary depending on the value of the underlying shares and interest rates. When the underlying value of the shares decline, the price of the issuer's convertible bonds will tend not to fall as much because the convertible bond's income potential will act as a price support. While the value of a convertible bond also tends to rise when the price of the underlying shares rises, it may not rise as much because their conversion value is more narrow. The value of convertible bonds also is affected by changes in interest rates. For example, when interest rates fall, the value of convertible bonds may rise because of their fixed income component.
Convertible Bonds. 50 .50 1.00 (a)
Convertible Bonds. For every HK$1,000,000 face value of the 2024 Convertible Bonds HK$[1,459,729.50]* in cash based on a conversion price of HK$[2.98] assuming that the “Change of Control” (as defined in the terms and conditions of the 2024 Convertible Bonds) takes place on the date of this joint announcement 2025 Convertible Bonds For every HK$1,000,000 face value of the 2025 Convertible Bonds HK$[1,412,336.25]* in cash based on a conversion price of HK$[3.08] assuming that the “Change of Control” (as defined in the terms and conditions of the 2025 Convertible Bonds) takes place on the date of this joint announcement and not taking into account the Conversion Price Reset. For further information, please refer to the section headed “POSSIBLE MANDATORY CONDITIONAL CASH OFFERS - The Convertible Bond Offer” of this joint announcement *For illustrative purpose only and subject to change, depending on the date of Completion and in respect of the 2025 Convertible Bonds, whether the Conversion Price Reset has been triggered The Convertible Bonds to be acquired under the Convertible Bond Offer shall be fully paid and shall be acquired free from all liens, charges, encumbrances, rights of pre-emption and any other third party rights of any nature and together with all rights attaching to them as at the Unconditional Date or subsequently becoming attached to them, including the right to receive in full all interests, dividends and other distributions, if any, the record date of which is on or after the Unconditional Date. Any interests, dividends or other distributions the record date of which is before the Unconditional Date will be paid by the Company to the Convertible Bond Holders who are qualified for such interests, dividends or distributions. In the event that the Company decides to declare, pay, make or agree to pay or make any dividends and other distributions on or after the date of this joint announcement and up to the Unconditional Date, the Offeror intends to reduce the offer price by the amount of such dividends and other distributions.
Convertible Bonds. Based on the “Change of Control” conversion price adjustment formula set out above, the later the CoC Date is, the higher the conversion price will be. In accordance with the method of calculating the “see-through” offer price as set out in Practice Note 6 to the Takeovers Code, the higher the conversion price is, the lower the offer price will be. Considering that the CoC Date will be after the date of this joint announcement, the definitive offer price for the 2024 Convertible Bonds under the Convertible Bond Offer will be lower than the illustrative offer price disclosed in this joint announcement.
Convertible Bonds. Based on the “Change of Control” conversion price adjustment formula set out above, the later the CoC Date is, the higher the conversion price will be. In accordance with the method of calculating the “see-through” offer price as set out in Practice Note 6 to the Takeovers Code, the higher the conversion price is, the lower the offer price will be. Considering that the CoC Date will be after the date of this joint announcement, the definitive offer price for the 2025 Convertible Bonds under the Convertible Bond Offer will be lower than the illustrative offer price disclosed in this joint announcement, unless the conversion price has been reset on the Conversion Price Reset date (being 26 June 2022), in which case the conversion price of the 2025 Convertible Bonds may be reset to a price lower than the “Change of Control” conversion price and the definitive offer price for the 2025 Convertible Bonds may be higher than the illustrative offer price disclosed in this joint announcement. As at the date of this joint announcement, the Offeror and the Company do not expect the Conversion Price Reset for the 2025 Convertible Bonds to take place or the conversion price to be below the Floor Conversion Price of HK$2.52, irrespective of whether Completion is prior to or after the Conversion Price Reset date. In any event, in accordance with Practice Note 6 to the Takeovers Code, the definitive offer prices under the Convertible Bond Offer will represent the “see-through” prices based on the offer price under the Share Offer.
Convertible Bonds. A Convertible Bond is a corporate Bond that gives its holder the option to convert it in shares of the issuer company at specified time periods and at a specified conversion price. A Convertible Bond has the features of a straight Bond with an attached Warrant and hence exposes the investor to the risks of both financial instruments. Treasury Bills Treasury Bills are zero coupon Bonds that are issued with a discount to their nominal (par) value. Treasury Bills may have maturities of one month, three months (thirteen weeks), six months or twelve months (fifty two weeks). They are mainly subject to interest rate risk. Collective Investment Schemes Generally, Collective Investment Schemes involve an arrangement that enables a number of investors to 'pool' their assets and have these professionally managed by an independent fund manager. This arrangement may take the form of a company, partnership or trust. Investments normally include bonds and shares of listed companies but depending on the type of the scheme, may include broader investments such as derivatives, real estate or any other financial instrument. The valuation of such a Scheme is generally performed by the fund manager or the investment consultant of the Scheme, the custodian or by an independent valuation agency (as the case may be). Collective Investment Schemes may invest in markets of high volatility and/or low liquidity and it is possible that there are increased exit or entry costs from or to the Scheme. The ability to liquidate such a Scheme may be limited, depending on the terms of operation of the Scheme and the long time period of notice required for redemption during which the value of each unit may exhibit high volatility and possibly decrease. It is possible that there is no secondary market for such Schemes and hence such an investment may be liquidated only through redemption.
Convertible Bonds. 11. Municipal Securities
Convertible Bonds. The Company shall file as promptly as practicable after the filing of the Offers and use its reasonable best efforts to have declared effective as promptly as practicable after the filing of the Offer and in any event prior to the closing of the Offers, a registration statement with the SEC permitting the conversion of the Convertible Bonds in accordance with their terms.
Convertible Bonds. Upon the occurrence of a Change of Control, you have the right to require the Company to repurchase your New Convertible Bonds. However, the Change of Control provisions will not afford protection to holders of New Convertible Bonds in the event of other transactions that could adversely affect the New Convertible Bonds. For example, transactions such as leveraged recapitalizations, refinancings, restructurings, or acquisitions initiated by the Company may not constitute a Change of Control requiring the Company to repurchase the New Convertible Bonds. In the event of any such transaction, the holders would not have the right to require the Company to repurchase the New Convertible Bonds, even though each of these transactions could increase the amount of the Company’s indebtedness, or otherwise adversely affect the Company’s capital structure or any credit ratings, thereby adversely affecting the holders of New Convertible Bonds. CHAPARRAL ENERGY, INC. RIGHTS OFFERING INSTRUCTIONS FOR ELIGIBLE HOLDERS Terms used and not defined herein shall have the meaning assigned to them in the Plan. To elect to participate in the Rights Offering, you must follow the instructions set out below:
Convertible Bonds. The $50,000 in principal amount of negotiable promissory notes, secured by all of Explorations' assets as undivided beneficiaries with the holders of the Notes, which are, at the option of the holder, convertible into either shares of Explorations' Common Stock or Preferred Stock, as described in this Agreement.
