RE:debenture redemptionIf another company wants to buy out Yellow Media, they would redeem all of the senior notes and all of the debentures as part of the deal.
Absent a buyout, Yellow Media must pay off all of the senior notes (from revenue or from a new bond issue) before they can spend any money on buying back debentures or common shares, or paying a dividend.
Last time around when the share price got above the exercise price ($19.04), an insignificant quantity of debentures were converted into (non-dividend paying) common shares. The total par value of debentures outstanding decreased from $107.50 million to $107.09 million.
Common shares closed at $18.60 today. Next time the price gets above $19.04 we will probably again see a trivial number of units convert. The real trigger for conversion will come when (a) the common price is above the exercise price and (b) the company issues enough new bonds to pay off the senior notes and make a debenture buyout imminent.