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US 7,257,556 B1Granted
Method and system for providing mandatorily convertible securities with associated senior debt instruments
AssigneeCitigroup Global Markets, Inc.
InventorAlan Rifkin
Life of this patent
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Abstract
The present invention relates to a method and system for providing and/or offering mandatorily convertible securities with associated senior debt instruments. The mandatorily convertible securities can be preferred stock or a purchase contract with the mandatorily convertible securities converting into a predetermined number of units of an underlying security on a mandatory conversion date. The predetermined number of units of an underlying security is based on a market value of the underlying security on the conversion date.
Claims10
A method for performing a financial transaction comprising:
- issuing a financial instrument, the financial instrument comprising:
- a mandatorily convertible security convertible into one of a predetermined number of shares of an underlying security based on a conversion rate and an applicable market value of the underlying security on a mandatory conversion date and a minimum predetermined number of shares of the underlying security on an optional conversion date prior to the mandatory conversion date;
- and
- a senior amortizing note providing one or more payments to a holder of the financial instrument;
- converting the mandatorily convertible security and issuing shares of the underlying security on one of the optional conversion date and mandatory conversion date;
- and
- making at least one payment to the holder of the financial instrument, wherein the at least one payment is based solely on the senior amortizing notes.
4 more elements
Dependencies are inferred from the claim text.