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Private Equity & Venture Capital SPECIAL HANDS FOR CORPORATE GOVERNANCE & FINANCE

Bond Investment

Securing Both Creditor’s and Shareholder’s Rights

Bond
Investment
(CB, BW)

Equity-related bonds comes with a right to become a shareholder in the future. Some of the most popular equity-related bonds are Convertible Bonds which gives the holder a option to convert the bonds into shares on certain condition and Bond with Warrant which gives the holder the right to purchase shares at the pre-determined price in case of new issuance by the company.

These equity-related bonds are debt instrument prior to the conversi-on or the exercise of the warrants as they are interest bearing just as the plain bonds, but after the conversion or exercise the holder can get all the benefit as a shareholder.

EHoo can assist in drafting and negotiating terms and conditions for the purchase of equity-related securities on behalf of an investor to ensure that there will not be any undue restriction for conversion or exercise of rights attached to the securities and the company will honors the investor's opinion in the management of business and the investor may accelerate the maturity if necessary.