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Wandelabsicherung (über Aktien)

English translation: embedded conversion right

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GLOSSARY ENTRY (DERIVED FROM QUESTION BELOW)
German term or phrase:Wandelabsicherung
English translation:embedded conversion right
Entered by: Alison Schwitzgebel
Options:
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10:04 Aug 11, 2002
German to English translations [PRO]
Bus/Financial - Investment / Securities
German term or phrase: Wandelabsicherung (über Aktien)
"Zur weiteren Sicherung der Liquidität wird neben den bereits eingeleiteten Kostensenkungsmaßnahmen die Immobilie in Deutschland veräußert und ein Darlehen mit einer Wandelabsicherung über Aktien der XYZ AG aufgenommen werden"

It's not in Zahn, and I can't find anything in Google for Wandelabsicherung. I think it means that the loan is secured by providing conversion rights to shares in XYZ AG, but am not entirely sure. Is there a proper term for this in English?

Thanks!

Alison
Alison Schwitzgebel
France
Local time: 07:51
with embedded conversion right
Explanation:
Without seeing the entire structure, I find it difficult to detect the hedging effect of a right to convert into shares. My best guess would be a neutral translation, along the lines of "...a loan with an embedded conversion right into XYZ AG shares".
Selected response from:

Ralf Lemster
Germany
Local time: 07:51
Grading comment
Thanks Ralf!
I find this a bit strange myself, but then this company is a bit strange!!!

Alison
4 KudoZ points were awarded for this answer

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Summary of answers provided
4convertible loan collateral
Andy Lemminger
2with embedded conversion right
Ralf Lemster


  

Answers


3 mins   confidence: Answerer confidence 2/5Answerer confidence 2/5
with embedded conversion right


Explanation:
Without seeing the entire structure, I find it difficult to detect the hedging effect of a right to convert into shares. My best guess would be a neutral translation, along the lines of "...a loan with an embedded conversion right into XYZ AG shares".

Ralf Lemster
Germany
Local time: 07:51
Specializes in field
Native speaker of: German
PRO pts in category: 419
Grading comment
Thanks Ralf!
I find this a bit strange myself, but then this company is a bit strange!!!

Alison
Login to enter a peer comment (or grade)

12 mins   confidence: Answerer confidence 4/5Answerer confidence 4/5
convertible loan collateral


Explanation:
That's exactly the way it works: If they cannot pay back the loan, the lender can demand shares instead.

Andy Lemminger
Canada
Local time: 23:51
Specializes in field
Native speaker of: German
PRO pts in category: 30
Login to enter a peer comment (or grade)




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