convertible bond

noun

1. a bond that can be exchanged for a fixed number of shares of the common stock of the issuing company at the holder's option.

Example Sentences

It holds convertible bonds that can be converted into an equity stake of up to 15% in Kioxia and its approval was one of the preconditions for the merger.

From Reuters

As part of the restructuring terms, a portion of its debt would be exchanged into convertible bonds backed by its Hong Kong-listed shares along with new notes with maturities of between two and nine years.

From Reuters

At the time, these companies sporting high equity valuations and low bond coupons issued low to no coupon convertible bonds.

From Reuters

Jana said management "recklessly" deployed capital, raised capital through an equity-linked convertible bond as markets tumbled after the collapse of Silicon Valley Bank, and installed a "misaligned" management compensation program.

From Reuters

Compared to the 6% yield paid by its regular bond, convertible bond investors get less, with current pricing implying a yield of around 2.5%.

From Reuters