Convertible bonds vs bonds with warrants: counting the dilution
Convert a CB and the bond disappears; exercise a BW's warrant and the bond stays. On the same 10 billion won raise, the cash reaching the company and the shares created both diverge.
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#전환사채 2 posts
Korean Convertible Bond Refixing: The 70% Floor and Dilution Math
Refixing on Korean convertible bonds cannot push the conversion price below 70% of its original level. A 30% price cut creates 43% more shares — here is the arithmetic on a 10 million share company issuing a 10 billion won CB.