Classic for mature businesses, Bridge for growth companies
The Classic Convertible is aimed at established companies planning to have an equity issue in the future and who want to gauge investor interest for it, Invesdor’s management explains.
The tenure of the Classic Convertible will be 2-5 years. Bondholders can opt to convert it into the issuing company’s shares during any qualified share round.
The Bridge Convertible is tailored more for growth companies. It will be marketed for example to companies looking for funding but who are not right now keen to hold an equity round because of the ongoing market downturn.
The Bridge Convertible’s tenure will be 1-2 years. It will be automatically converted into the issuing company’s shares during the next qualified share round or when the bond matures.
“All kinds of businesses are currently looking at different funding options, and one size does not always fit all. we discussed our approach at length and concluded that we needed to offer two models with this product so that companies can make the most of it”, Invesdor Group’s Head of Deal Flow, Finland Joel Kettunen explains.
Invesdor survey suggests investors are still interested in investing
Kettunen feels confident that the new convertible bond products will reach their audience.
“We strongly believe that we are offering flexibility that’s in high demand right now with both companies and investors. Our recent survey results showed that there is still a clear interest to make investments if the right opportunity comes along. We are reacting to this and expanding our product portfolio to offer our partners – companies as well as investors – a new, up-to-date investment solution.”
Invesdor’s convertible bond products are described in more detail on Invesdor’s website for investors and for companies.
Source: https://home.invesdor.com/en/blog/invesdor-introduces-two-convertible-bond-products
