FBD

[nwoodman]

This one seems to be working out very nicely.  From the Independent  http://www.independent.ie/business/irish/fbd-faces-battle-for-control-after-shares-soar-35687594.html

 

The recovery in the FBD share price means that the €70m bond issued to Fairfax in 2015 is now virtually certain to be converted into a near-20pc shareholding in September 2018, diluting the existing shareholders and triggering a battle for control of the only remaining Irish-owned insurer.

 

and

 

Following the huge losses recorded in 2015 FBD bolstered its balance sheet by issuing a €70m bond to Canadian investor Prem Watsa's Fairfax Financial. Not only does the bond pay a hefty 7pc coupon or interest rate, it is convertible into FBD shares at any time from September 2018 if the FBD share price rises to €8.50 or above.

 

A move to more of these "paid to wait" type deals is very welcome

 

cheers

 

nwoodman

 

[giofranchi]

This one seems to be working out very nicely.  From the Independent  http://www.independent.ie/business/irish/fbd-faces-battle-for-control-after-shares-soar-35687594.html

 

The recovery in the FBD share price means that the €70m bond issued to Fairfax in 2015 is now virtually certain to be converted into a near-20pc shareholding in September 2018, diluting the existing shareholders and triggering a battle for control of the only remaining Irish-owned insurer.

 

and

 

Following the huge losses recorded in 2015 FBD bolstered its balance sheet by issuing a €70m bond to Canadian investor Prem Watsa's Fairfax Financial. Not only does the bond pay a hefty 7pc coupon or interest rate, it is convertible into FBD shares at any time from September 2018 if the FBD share price rises to €8.50 or above.

 

A move to more of these "paid to wait" type deals is very welcome

 

cheers

 

nwoodman

 

Good find! Thank you for sharing.

 

Cheers,

 

Gio

[petec]

Pity it's a convertible.  I rather like the prefs + warrants deals where you (as I understand it) get to keep the pref when the warrant springs into life!

[nwoodman]

Don't disagree, but if it ultimately "converts" to yet more geographic and/or strategic coverage for the insurance ops then I would be more than happy. 

 

cheers

 

nwoodman

 

 

[petec]

Yes.  Presumably the trick is to delay converting until as late as possible, so as to collect all the coupons on the bond and still have the equity?  Depends on the exact terms I guess.