equity contract note


A type of mandatory convertible which can be exchanged for common stock once the security reaches maturity. The common stock will have the market value equal to the principal of the equity contract note. If the holder of the equity contract note does not wish to receive the common stock it will be settled on behalf of the holder by the issuer of the note through a sale, with the holder receiving cash.

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The equity contract note was something mandatory, which meant that it could not be bargained with and had to be fulfilled.

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We had finally got ourselves an equity contract note and were biding on time before pulling the trigger and exercising it.

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The equity contract note was purchased by the investor with the intention of exchanging the security for common stock soon.

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equity commitment note equity commitment note