RE:Another picture - $50m 6% Debentures vs $50m common sharesshareholders1 wrote: Perhaps this has already been discussued, but may be not, based on the last few posts.
The difference in cost/ dlution is not that large after adjusting for the 6% interest paid. If you were CEO, what would you rather have on the BS? $50 more debt or $50m more equity?
As I've stated before, convertible debentures count as equity for most banks when they consider debt ratios.