In the case of a rights issue, where the issuing company is creating new shares and diluting the existing share
holders share of equity, the effect on the share price will depend on the reason for raising funds and the markets perception of future returns arising from how the company puts the new funds to use.
Not exact matches
Under European rules, a public recapitalization entails that
equity holders and subordinated creditors (owners
of high - ranking debt) will have to
share the burden and enter a «bail - in»
of 8 percent (minimum) before public money is used.
There is no
share holder buyer
of last resort, and so
equity buyers can demand a higher return than bond
holders.
Pursuant to our
equity compensation plans and certain agreements with certain
holders of our capital stock, including Jack Dorsey, Jim McKelvey, Khosla Ventures III, LP, entities affiliated with JPMC Strategic Investments, entities affiliated with Sequoia Capital, entities affiliated with Rizvi Traverse, and an entity affiliated with Mary Meeker, including an amended and restated right
of first refusal and co-sale agreement, we or our assignees have a right to purchase
shares of our capital stock which stockholders propose to sell to other parties.
The Company's issuance
of shares of common stock, including the additional
shares that will be authorized if the proposal is adopted, may dilute the
equity ownership position
of current
holders of common stock and may be made without stockholder approval, unless otherwise required by applicable laws or NYSE regulations.
Preferred returns: Preferred returns represent an amount that the startup must return to the venture capitalist before it distributes any assets (payments) to the
holders of common (residual)
equity shares.
in the case
of our directors, officers, and security
holders, (i) the receipt by the locked - up party from us
of shares of Class A common stock or Class B common stock upon (A) the exercise or settlement
of stock options or RSUs granted under a stock incentive plan or other
equity award plan described in this prospectus or (B) the exercise
of warrants outstanding and which are described in this prospectus, or (ii) the transfer
of shares of Class A common stock, Class B common stock, or any securities convertible into Class A common stock or Class B common stock upon a vesting or settlement event
of our securities or upon the exercise
of options or warrants to purchase our securities on a «cashless» or «net exercise» basis to the extent permitted by the instruments representing such options or warrants (and any transfer to us necessary to generate such amount
of cash needed for the payment
of taxes, including estimated taxes, due as a result
of such vesting or exercise whether by means
of a «net settlement» or otherwise) so long as such «cashless exercise» or «net exercise» is effected solely by the surrender
of outstanding stock options or warrants (or the Class A common stock or Class B common stock issuable upon the exercise thereof) to us and our cancellation
of all or a portion thereof to pay the exercise price or withholding tax and remittance obligations, provided that in the case
of (i), the
shares received upon such exercise or settlement are subject to the restrictions set forth above, and provided further that in the case
of (ii), any filings under Section 16 (a)
of the Exchange Act, or any other public filing or disclosure
of such transfer by or on behalf
of the locked - up party, shall clearly indicate in the footnotes thereto that such transfer
of shares or securities was solely to us pursuant to the circumstances described in this bullet point;
The Series A Preferred shall also be convertible into any future series
of Preferred Stock (the «Future Preferred») under either
of the following circumstances: (a) if such conversion is approved by the Board or (b) if such conversion is in connection with a future Preferred Stock
equity financing in which the Company's fully diluted pre-money valuation is greater than the Company's fully diluted post-money valuation immediately following the Series A Financing contemplated by this term sheet (a «Future Financing»), in either case, on a one - for - one basis (subject to anti-dilution adjustment) at the option
of the
holder; provided however, if such conversion is in connection with a Future Financing, that the
holder may convert into
shares of Future Preferred only in the event that all
of such
shares of Future Preferred received by the
holder upon conversion are sold to an Approved Investor (as defined below) no later than 90 days following the first closing
of the Future Financing at a price per
share no lower than the price per
share at which the Company sells
shares of such Future Preferred in the Future Financing and, provided further, that such Approved Investor is not an affiliate, family member, or related party
of the
holder.
The model «Convertible Security» Yokum has published also incorporates that clever feature
of more sophisticated note templates, whereby the
holder of the convertible instrument gets no more preferred
equity for her investment than does the new money in the Qualified Financing, and takes her discount in the form
of common
shares.
These long - term options provide the
holder the right to purchase, in the case
of a call, or sell in the case
of a put, a specified number
of stock
shares (or an
equity index) at a pre-determined price up to the expiration date
of the option, which can be three years in the future.
With outstanding debt
of $ 1.8 billion, that would result in the transfer
of about $ 9 per
share of value to
equity holders.
Share buybacks increase the ownership stake
of equity holders by reducing the number
of outstanding
shares.
In my writings on managing stock options — Consider Your Options, a book for option
holders, and
Equity Compensation Strategies, a text for professional advisors — I explain why the optimal approach from a tax perspective for people who have very large profits built into their ISOs is to sell 65 %
of the
shares immediately after exercise
of the option and hold 35 % long enough to convert the profit on those
shares to long - term capital gain.
Interestingly, Klarman is also a large
holder of the common
equity and he purchased before
shares fell to current levels.
Preferred
shares are
equity investments in the sense that they stand behind bond
holders in the event
of bankruptcy.
Existing
shares holders are given the right to buy new
shares at the discounted price in proportion to their existing
share holdings, thus allowing them to maintain their
share of equity.
The two securities to look at are CDCO.OB (the new common stock
of Comdisco that was issued to the old bondholders) and CDCOR.OB (The old
equity interest in Comdisco which
share in proceeds
of the liquidation
of Comdisco after a certain $ $ amount has been paid to the
holders of CDCO.....
In the case
of dividends, the cash that will be paid out as a dividend to
share holders forms part
of a company's
equity.
20 Pro Forma Financial Highlights Sources & Uses Refinance PENN Existing Debt: $ 2.7 billion Pre-spin redemption
of Fortress Investment Group Conversion
Shares: $ 412 million Pre-spin redemption
of other Preferred
Equity: $ 253 million (1) Cash portion
of the Accumulated E&P Dividend: $ 438 million Transaction Expenses: ~ $ 145 million Total Transaction Debt: $ 3.75 — $ 4.25 billion Key GLPI (REIT) Stats Target Leverage: 5.5 x EBITDA Target Interest Coverage: 3.2 x Target Dividend Payout Ratio: ~ 80 % AFFO less employee option
holder dividends Key PNG (OpCo) Stats Target Leverage: 3.0 x EBITDA Implied Adjusted Leverage: 5.6 x EBITDAR Target Rent Coverage: ~ 2.0 x Target Interest Coverage: > 5.0 x Includes $ 22.5 m Preferred
Equity redeemed in the first quarter
of 2013
The separation, which will provide current eBay stockholders with
equity ownership in both eBay and PayPal, will be effected by means
of a pro rata distribution
of 100 percent
of the outstanding
shares of PayPal common stock to
holders of eBay common stock.