@Hittman I suggest you read the term sheet more carefully .... especially the headings 'Automatic conversion price and Floor Price adjustments' and 'Automatic redemption'
Yes, CVI can only convert $2M of notes every 6 mths, but ..
- CVI have the option to convert, not the obligation, so they can defer any conversion to a future 6mth anniversary of their choosing.
- and once set, the conversion price becomes a cap for any future redemption, and so here's the catch, the conversion price then can only go lower, not higher.
So in fact, it is possible that the 'whole lot' can be converted at the lowest price possible, all be it in 5 years time, if CVI so chooses.
@AICp is correct when he says this is an unusual CN transaction.... it's an absolute shocker, and unfortunately SH who haven't read the term sheet or don't understand it, will only start to realise this as the chickens come home to roost further down the track.
(20min delay)