This is the second in a series of posts about how a company can best respond to our current capital markets environment.
Frequently, our clients express their frustration that the equity market is so volatile now that investors seem reluctant to act. Many investors are unsure whether they’ll get a positive return on their investment.
This has driven many to seek out securities with a yield, maybe interest on debt or a dividend on equity.
Seeing this, we’ve come up with a transaction which responds to investors’ current preferences.
We’ve advised companies to offer their common shareholders a new yield-oriented security in exchange for their common.
We’ve tailored the exchange offers to fit our client’s specific circumstances, there are a number of variations available.
The key is that our clients offer what is in great demand, a yield security, in exchange for what seems less in demand, plain common stock.
We’d be happy to discuss this idea with you to determine whether it works in your situation.
Please call me or email me. Thank you.