Question
In March 2016, NuVasive, a medical device company, raised $634 million of 2.25% convertible senior notes due 2021. The companys stock price was $45.15 at
In March 2016, NuVasive, a medical device company, raised $634 million of 2.25% convertible senior notes due 2021. The companys stock price was $45.15 at the time.
The conversion rate is 16.7158 shares per $1000 bond. Calculate the conversion price in dollars and the premium as a percentage. Then discuss reasons that explain the size of the premium. Also explain why NuVasive decided to issue convertible bonds instead of regular bonds.
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Foundations In Personal Finance
Authors: Dave Ramsey
1st Edition
0981683967, 978-0981683966
