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Author: blesto Big red star, 1000 posts Global Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 216  
Subject: Re: emerging markets Date: 10/23/2012 5:22 PM
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One thing I found interesting;

Convertible bonds planned

Nokia plans to raise €750 million by issuing bonds that can be converted into shares, seeking an inexpensive way to bolster its fragile finances as it battles to win back market share, Reuters reported from Helsinki.

With its cash reserves falling and its credit ratings cut to junk over the past year, analysts have said Nokia needs to show a turnaround in the next several months if it is to survive.

But analysts said Nokia was smart to choose convertible bonds, which normally pay lower interest rates than conventional bonds because they offer investors the chance of making money when they are converted into shares.

“It is a rather cheap way to get extra financing,” said Mikko Ervasti, an analyst with Evli.


How do bonds like that work?
Do they automatically convert after a certain period of time?
Does the owner of the bonds choose if they want to convert or not?
Can they expire before they're converted?
Is the dilution of existing shares a concern?

Anyway, I like that NOK is being proactive to strenghthen their finances.
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