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Fangster

12/11/16 5:37 PM

#31426 RE: hawkmd #31425

Sorry but your links are not all that useful. The equity kicker on the convertible is simply an incentive to the lender and is in effect an interest charge to the borrower or OID. The conversion feature does not put the lender on the same priority as common equity owners with respect to the debt. This is just plain wrong.

I believe it's possible the value of the conversion feature might have different implications but I would need to check it.