San Bernardino California Proposal to authorize and issue subordinated convertible debentures

• Category: Corporations - Public - Transactions with Officers Directors or Insiders
• State: Multi-State
• County: San Bernardino
• Control #: US-CC-16-103
• Format: Word; Rich Text

Description

Proposal to authorize and issue subordinated convertible debentures San Bernardino County, located in California, has put forth a proposal to authorize and issue subordinated convertible debentures. These debentures are financial instruments that combine characteristics of bonds and stocks, offering investors the opportunity to convert their debt into equity shares of the issuing company. The proposed subordinated convertible debentures aim to provide a funding source for various projects and initiatives in San Bernardino County. This financing option allows the county to raise capital while simultaneously providing potential equity ownership to debenture holders. By authorizing the issuance of these convertible debentures, San Bernardino County seeks to attract investors interested in both fixed-income securities and equity participation. The subordinated nature of the debentures entails that they rank below other debts in case of default or bankruptcy. This element can affect the overall risk profile of the debentures, potentially offering higher returns to investors. A key advantage of subordinated convertible debentures is their flexibility. Holders have the option to convert their principal investment into equity shares of the issuing entity, typically at a pre-determined conversion price. This feature presents an opportunity for investors to participate in potential capital appreciation if the value of the issuing company's shares increases. The San Bernardino County proposal may encompass different types of subordinated convertible debentures, including: 1. Callable Convertible Debentures: These debentures provide the issuer with the right to redeem the debentures before maturity. The call feature allows the county to repurchase the debentures at a predetermined price, offering flexibility in managing interest rate risk and refinancing options. 2. Put table Convertible Debentures: This type of debenture grants the holder the right to sell the security back to the issuer prior to maturity. The put provision offers investors an exit strategy, providing liquidity and potentially protecting against adverse market conditions. 3. Zero-Coupon Convertible Debentures: These debentures do not pay periodic interest but are issued at a discount to their face value. Investors receive their returns through capital appreciation upon conversion into equity shares. Zero-coupon convertible debentures may appeal to investors seeking potential capital gains rather than regular coupon payments. San Bernardino County's proposal to authorize and issue subordinated convertible debentures aims to diversify funding sources, attract investors, and potentially provide an opportunity for equity participation. The range of debenture types presents various options for both the county and potential investors, accommodating different risk appetites and financial objectives.

San Bernardino County, located in California, has put forth a proposal to authorize and issue subordinated convertible debentures. These debentures are financial instruments that combine characteristics of bonds and stocks, offering investors the opportunity to convert their debt into equity shares of the issuing company. The proposed subordinated convertible debentures aim to provide a funding source for various projects and initiatives in San Bernardino County. This financing option allows the county to raise capital while simultaneously providing potential equity ownership to debenture holders. By authorizing the issuance of these convertible debentures, San Bernardino County seeks to attract investors interested in both fixed-income securities and equity participation. The subordinated nature of the debentures entails that they rank below other debts in case of default or bankruptcy. This element can affect the overall risk profile of the debentures, potentially offering higher returns to investors. A key advantage of subordinated convertible debentures is their flexibility. Holders have the option to convert their principal investment into equity shares of the issuing entity, typically at a pre-determined conversion price. This feature presents an opportunity for investors to participate in potential capital appreciation if the value of the issuing company's shares increases. The San Bernardino County proposal may encompass different types of subordinated convertible debentures, including: 1. Callable Convertible Debentures: These debentures provide the issuer with the right to redeem the debentures before maturity. The call feature allows the county to repurchase the debentures at a predetermined price, offering flexibility in managing interest rate risk and refinancing options. 2. Put table Convertible Debentures: This type of debenture grants the holder the right to sell the security back to the issuer prior to maturity. The put provision offers investors an exit strategy, providing liquidity and potentially protecting against adverse market conditions. 3. Zero-Coupon Convertible Debentures: These debentures do not pay periodic interest but are issued at a discount to their face value. Investors receive their returns through capital appreciation upon conversion into equity shares. Zero-coupon convertible debentures may appeal to investors seeking potential capital gains rather than regular coupon payments. San Bernardino County's proposal to authorize and issue subordinated convertible debentures aims to diversify funding sources, attract investors, and potentially provide an opportunity for equity participation. The range of debenture types presents various options for both the county and potential investors, accommodating different risk appetites and financial objectives.