Jun 01, 2015
New York partner Robert Evans (Capital Markets-Americas) wrote an article, titled “Exchanges Alter View on 20% Rule for Convertible Bonds,” that was published by Bloomberg BNA’s Securities Regulation & Law Report on June 1.
In this article, Evans analyzes the new interpretation of the Nasdaq and New York Stock Exchange (NYSE) rules that affect convertible bond financings. This concerns companies doing Rule 144A offerings where the number of shares underlying the convertible bonds exceeds 20% of the outstanding shares. With these changes, new convertible bonds offerings have become a bit easier since flexible settlement convertible bonds are treated the same as physically settled bonds under shareholder approval rules.