In March 2016, NuVasive, a medical device company, raised $634 million of 2.25% convertible senior notes due
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In March 2016, NuVasive, a medical device company, raised $634 million of 2.25% convertible senior notes due 2021. The company’s stock price was $45.15 at the time.
The conversion rate is 16.7158 shares per $1000 bond. Calculate the conversion price in dollars and the premium as a percentage. Then discuss the reasons that explain the size of the premium. Also, explain why NuVasive decided to issue convertible bonds instead of regular bonds.
Related Book For
Introduction to Operations Research
ISBN: 978-1259162985
10th edition
Authors: Frederick S. Hillier, Gerald J. Lieberman
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