Question: Convertible Subordinated Notes Issued under U.S. SEC Rule 144A Aggregate principal amount $100 million Proceeds net of offering costs $97.0 million Coupon 0% Conversion ratio

Convertible Subordinated Notes
Issued under U.S. SEC Rule 144A
Aggregate principal amount $100 million
Proceeds net of offering costs $97.0 million
Coupon 0%
Conversion ratio

107.0526

shares per

$1,000.00

principal amount
Call date July 1, 2008
Call price 100%
Maturity July 1, 2010

You are the CFO of RealNetworks on July 1, 2008. The company's stock price is $9.92 and its convertible debt is now callable.

a. What is the value of the shares the bondholders would receive per $1,000.00 bond if they convert?

The value the bondholders would receive is $

b. What is the value per $1,000.00 bond they would receive under the call?

c. If you call the bonds, will the bondholders convert into shares or accept the call price?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Q:

ou are the CFO of RealNetworks on July 1, 2008. The company's stock price is $9.74 and its convertible debt is now callable. See the table below: Convertible Subordinated Notes Issued under U.S. SEC...

Q:

You are the CFO of RealNetworks on July 1, 2008. The company's stock price is $9.51 and its convertible debt is now callable. See the table below: Convertible Subordinated Notes Issued under U.S. SEC...

Q:

Convertible Subordinated Notes Issued under U.S. SEC Rule 144A Aggregate principal amount Proceeds net of offering costs Coupon Conversion ratio Call date Call price Maturity $100 million $97.0...

Q:

You are the CFO of RealNetworks on July 1, 2008. The company's stock price is $9.74 and its convertible debt is now callable. See the table below: Convertible Subordinated Notes Issued under U.S. SEC...

Q:

You are the CFO of RealNetworks on July 1, 2008. The company's stock price is $9.83 and its convertible debt is now callable. See the table below: Convertible Subordinated Notes Issued under U.S. SEC...

Q:

You are the CFO of RealNetworks on July 1, 2008. The company's stock price is $9.82 and its convertible debt is now callable. See the table below: Convertible Subordinated Notes Issued under U.S. SEC...

Q:

You are the CFO of RealNetworks on July 1,2008. The company's stock price is $9 38 and its convertible debt is now callable. See the table below Convertible Subordinated Notes Issued under US SEC...

Q:

You are the CFO of RealNetworks on July 1, 2008. The company's stock price is $9.74 and its convertible debt is now callable. See the table below: Convertible Subordinated Notes Issued under U.S. SEC...

Q:

You are the CFO of RealNetworks on July 1, 2008. The company's stock price is $9.77 and its convertible debt is now callable. See the table below Convertible Subordinated Notes Issued under U.S. SEC...

Q:

You are the CFO of RealNetworks on July 1, 2008. The company's stock price is $ 9.74and its convertible debt is now callable. See the table below: Convertible Subordinated Notes Issued under U.S. SEC...

Q:

Balance Equation (NH4)3PO4 + Pb(NO3)4 Pb3(PO4)4 + NH4NO3

Q:

Dover Chemical Company uses oil to produce two types of plastic products, P1 and P2. Dover budgeted 30,000 barrels of oil for purchase in June for $28 per barrel. Direct labor budgeted in the...

Q:

3. Given the information in Table 1 , fi nd inventory investment in 2005. TABLE 1 Date January 1, 2005 July 1, 2005 December 31, 2005 Level of Inventory $500 million 530 million 485 million

Q:

SIMAD UNIVERSITY Class: BACC25 Subject: Islamic Accounting Instructions: a) Follow The Instructions. Midterm Exam Instructor: All Ibrahim Date: 6-4-2022 b) You Have 1.5 Hrs. To Complete This Test. c)...

Q:

Technology. Assume that you have received an e-mail invitation for an interview from the targeted application letter that you wrote in Application Exercise 1. The message suggested a date and time...

Q:

Global. Explore business websites or your library resources, and find a company with international opportunities. Write a general application letter expressing your interest in working for that...

Q:

Teamwork. With two classmates, role-play an interview for the position in the application letter that you wrote in Application Exercise 1. Take turns being the interviewer and the applicant. After...