Thorprods, Inc., common stock is listed on the New York Stock Exchange and satisfies the listing requirements of Form S-3, but it is not a well-known seasoned issuer. Thorprods common shares currently trade at $15 per share. Thorprods proposes to register $100 million of bonds to be issued in $1,000 denominations bearing a face rate of interest of 11 percent, payable each quarter. Each bond is convertible at any time into 50 Thorprods common shares. Bonds of the same risk classification as Thorprods currently carry an effective rate of interest of about 12 percent. Thorprods is not desperate for the cash from the offering and hopes to be able to place the bonds when there is a decline in interest rates, which it hopes will be in the near future. Can the securities Thorprods proposes to offer be registered for the shelf?

Answer rating: 100% (QA)

Yes the securities Thorprods proposes to offer can be regi... View the full answer