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mandatory convertible Finance Definition

A debt issue that is converted into equity within a certain time period, often three years. A mandatory convertible is an attractive alternative for companies that have too much debt. Ratings agencies typically count 80 cents out of each $1 in the mandatory convertible as equity, which helps protect the company’s debt rating. The debt can be ranked as equity because within three years the debt will be turned into equity.

Browse dictionary entries near mandatory convertible

  1. ‹ mandatory
  2. ‹ mandated
  3. ‹ mandate
  4. ‹ mandarinate
  5. ‹ mandarin duck
  6. ‹ mandarin
  7. ‹ Mandan
  8. ‹ mandamus
  9. ‹ Mandalay
  10. ‹ mandala
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