Obligacje zamienne z niską premią konwersji. Alternatywa dla emisji akcji czy zwykłego długu?
Convertible Bonds With a Low Initial Conversion Premium. An Alternative for Straight Debt or for Common Equity?

Summary/Abstract: The aim of the article is to identify the motives for the issuance of convertible bonds with a low initial conversion premium. Using a sample of 829 convertible debt issues carried out between 2004 and 2014 by the manufacturing and service companies from the United States and Europe, the research shows that low premium convertibles may be used by undervalued companies as a substitute for common stock since they help them to increase their equity capital at a later time and under more favorable conditions. Firms are likely to settle a lower-than-average conversion premium in order to encourage bondholders to exercise a conversion option shortly after debt offering.

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