美国公司债券介绍

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Bond Issue Terms
Issue amount Issue date Maturity date Face value Coupon interest Coupon dates Offering price Yield to maturity Call provision Call price Trustee Security Rating Bond issue total face value is $20 million Bonds offered to the public in December 1998 Remaining principal is due December 31, 2018 Face value denomination is $1,000 per bond Annual coupons are $100 per bond Coupons are paid semiannually Offer price is 100% of face value Based on stated offer price Bonds are call protected for 5 years after issuance 110 before 12/31/08, 100 Callable at 110 percent of par value through thereafter 2008. Thereafter callable at par. United Bank of Florida Trustee is appointed to represent bondholders None Bonds are unsecured debenture Moody's A1, S&P A+ Bond credit quality rated upper medium grade by Moody's and S&P's rating $20 million 12/15/98 12/31/18 $1,000 $100 per annum 6/30, 12/31 100 10% Callable after 12/31/03
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Corporate Bond Types
• • • • • Notes versus bonds Debentures Mortgage bonds Collateral trust bonds Equipment trust certificates • Leasing arrangements
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More on Convertibles
• Exchangeable bonds • Minimum (floor) value of convertible: • Straight or “intrinsic” bond value • Conversion value • Conversion option value
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Principal repayment
• Term bonds versus serial bonds • Sinking funds--how do they work? • Fractional repayment each year • Good news -- security • Bad news -- unfavorable calls • How trustee redeems
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Private Placements
• • • • Trust Indenture Act of 1939 Indenture not required Exempt from SEC Notes / Bonds
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Figure 11.2. Callable and noncallable bonds
200 175
Bond price (% of par)
Noncallable bond
150 125 100 75
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Preferred Stock
• Preferred stockholders are not creditors • Generally don’t vote • Fixed dividend expressed as percent of face; paid quarterly • No maturity, but often callable • Sometimes convertible • Cumulative versus noncumulative • Corporate tax treatment
Callable bond
50 25 0 4 8 12 16 20
Yield to maturity (%)
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Put bonds
• Put provisions • Put price • Put date • Put deferment • Extendible bonds • Value of the put feature • Cost of the put feature
1ቤተ መጻሕፍቲ ባይዱ-1
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Bond Basics
• Corporate debt • Principal & Coupons • Different from common stock: • Creditor’s claim on corporation • Promised cash flows • Most are callable • Over 1/2 owned by life insurance companies & pension funds • Cash flow matching • Bond indenture • Plain vanilla bonds • Unsecured debt • Rating agency
Chapter 11 Corporate Bonds
• • • • • • • • • • • Corporate Bond Basics Types of Corporate Bonds Bond Indentures Protective Covenants Bonds without Indentures Preferred Stock Adjustable-Rate Bonds & Preferred Stock Corporate Bond Credit Ratings Junk Bonds Bond Market Trading Summary & Conclusions
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The Indenture
• • • • • Indenture summary Prospectus Senior debentures / subordinated debentures Negative pledge clause Call feature--bond refunding • Deferred call provision / call protection • Call premium • (anti) refunding provision • Cost of the call feature / convexity
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Conversion strategy
• Optimal conversion? • Forced conversion • When do calls typically occur? • What should an investor do?
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Convertible bonds
• Why are they issued? • Why are they purchased? • Conversion ratio:
• CR = No. of stock shares acquired by conversion
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