Interest - Non-Conversion Premium Clause Samples

Interest - Non-Conversion Premium. The Convertible Bonds will accrue an annual fixed interest of 5%, non-capitalized and payable in fine, at the conversion date (in the proportion of Convertible Bonds converted, in the event of partial conversion) or redemption. In the event of early redemption, whether obligatory or at the bearer's initiative, under Article 4.4 the interest will be paid pro-rata according to the number of days between the dates of subscription and redemption, repurchase or conversion of the Convertible Bonds. This calculation will be made on the basis of the 365-day year. However, it is stipulated that where a Transaction is carried out as defined in Article 5.1.2, the interest will cease to accrue from the date the conversion ratio is determined and independently of the date upon which the owners of the Convertible Bonds exercise their conversion rights. Moreover, for each Convertible Bond not converted will be entitled, in addition to redemption of the principal, to a non conversion premium calculated so as to assure the owner of the Convertible Bond an annual actuarial remuneration equal to seven and one-half per cent (7.5%). It should be noted that the interest runs from the date of subscription of the Convertible Bonds until the date of redemption.