Abstract: A straight debt security may include a maturity component, a reset component, and a remarketing component. In general, the maturity component provides a maturity term of the straight debt security. The reset component specifies the terms and conditions for resetting a yield on the straight debt security. The remarketing component provides terms and conditions for remarketing the straight debt security to new investors. After remarketing, the straight debt security remains outstanding and potential recapture of excess tax benefits is postponed until the straight debt security ceases to be outstanding.

Abstract: A unit may include a forward contract and a remarketable security that secures performance of obligations of the forward contract. The forward contract may require a holder to purchase a quantity of stock from an issuer at a settlement price on or before a settlement date. The remarketable security may have an issue denomination and a maturity date that is later than the settlement date. At the time of issue, the unit may provide that the remarketable security is to be offered to new holders at a remarketing time at a remarketing denomination that is different from the issue denomination. The unit also may provide, at time of issue, that the remarketable security is to be remarketed with a remarketing coupon frequency different from an issue coupon frequency, without subordination to senior debt of the issuer, and/or without a previously available interest rate deferral option to the issuer.

Abstract: The present invention is directed to a method comprising the step of issuing one or more convertible hybrid securities by an issuer to one or more investors. The issued hybrid securities may have (1) a legally enforceable covenant (e.g., an RCC) and (2) a mandatory deferral which may require the issuer to withhold certain payments upon an occurrence of specified events. The hybrid securities may be convertible by the investor or callable by the issuer. Upon conversion by an investor, the issuer may make a payment to the investor in an amount of preferred stock up to the par value of the hybrid securities and an amount of common stock for the amount paid over the par value of the hybrid securities. The preferred stock may comprise a dividend rate. The dividend rate may be (1-statutory tax rate) times a coupon for the hybrid securities. The issuer may settle with the investor, or all of the investors, upon the issuer calling the hybrid securities.

Abstract: A method for increasing an amount of a security available to an investor for borrow is disclosed. The method includes purchasing a first quantity of a security, and entering into a pre-paid forward purchase contract to subsequently deliver a second quantity of the security to a first entity. The method also includes lending a third quantity of the security to an investor.

Abstract: A method of providing a liquidity facility for a business entity is disclosed. According to various embodiments, the method comprises offering for sale a unit issued by an issuer. Each unit comprises a credit linked note, wherein the credit linked note is linked to the credit of the business entity. Interest on the notes is funded, at least in part, from (1) income received by the issuer from an interest rate swap counter-party under an interest rate swap agreement, wherein the issuer pays the interest rate swap counter-party income received on assets held by the issuer, wherein the assets are purchased using proceeds from the issuance of the units, and (2) payments from the business entity to the issuer pursuant to a credit agreement between the business entity and the issuer.

Abstract: A convertible security structured for issuance to at least one investor by an issuer. The convertible security includes a make-whole premium that is payable to the at least one investor upon conversion following occurrence of a fundamental change involving the issuer of at least one underlying security into which the convertible security is convertible, wherein the make-whole premium is determined by using a methodology established at one of prior to issuance and issuance of the convertible security that references a value of an option embedded in the convertible security.

Abstract: In various embodiments of the present invention, aggregate transactions and methods for structuring aspects of aggregate transactions are provided. Aggregate transactions are provided that include a convertible debt component structured for issuance to at least one investor by an issuer; a convertible debt hedge is integrated with the convertible debt component to form an integrated aggregate transaction, wherein at least one of an anti-dilution provision, a consequence of merger provision, and a concentrative event provision of the convertible debt hedge matches at least one corresponding provision of the convertible debt component.

Abstract: A straight debt security may include a maturity component, a reset component, and a remarketing component. In general, the maturity component provides a maturity term of the straight debt security. The reset component specifies the terms and conditions for resetting a yield on the straight debt security. The remarketing component provides terms and conditions for remarketing the straight debt security to new investors. After remarketing, the straight debt security remains outstanding and potential recapture of excess tax benefits is postponed until the straight debt security ceases to be outstanding.

Abstract: A convertible security may include a maturity component, a conversion component, and a contingent component. In general, the maturity component provides a maturity term of no more than five years. The conversion component provides terms and conditions for converting the convertible security for another asset. The contingent component provides one or more contingent payments upon the occurrence of one or more specified conditions. The contingent component is structured to ensure that the convertible security qualifies for treatment as a contingent payment debt instrument under the tax code, wherein the comparable yield of the convertible security is greater than applicable Federal rate (AFR) plus five percentage points.

Abstract: A convertible security may include a maturity component, a conversion component, a contingent component, and a remarketing component. In general, the maturity component provides a maturity term of the convertible security. The conversion component provides terms and conditions for exchanging the convertible security for another asset. The contingent component provides one or more payment contingencies triggered upon the occurrence of one or more specified conditions. The remarketing component provides terms and conditions for remarketing the convertible security to new investors. After remarketing, the convertible security remains outstanding and potential recapture of excess tax benefits is postponed until the convertible security ceases to be outstanding.

Abstract: A method for utilizing derivative securities is disclosed. According to one embodiment, the method includes steps for a first entity obtaining a call option from a second entity, wherein the call option comprises a first maturity date. In addition, the method also includes steps for issuing a forward contract to the second entity, wherein the forward contract comprises a second maturity date.

Abstract: A method for increasing an amount of a security available to an investor for borrow is disclosed. The method includes purchasing a first quantity of a security, and entering into a pre-paid forward purchase contract to subsequently deliver a second quantity of the security to a first entity. The method also includes lending a third quantity of the security to an investor.

Abstract: A unit, such as a unit structured mandatory convertible security, is disclosed. The unit may have a stated amount. According to one embodiment, the unit may include a fixed income security and a forward purchase contract, which are separable. The fixed income security may have a principal amount, a maturity date and an interest rate. The forward purchase contract may obligate a holder of the forward purchase contract to purchase a quantity of equity securities from an issuer of the unit at a settlement price no later than a settlement date specified in the forward purchase contract. The quantity of equity securities to be purchased by the holder may be determined by dividing the stated amount of the unit by the market price of the equity securities at the date the unit is issued.

Abstract: A financial unit is disclosed. According to one embodiment the unit includes a fixed income security and a forward purchase contract. The fixed income security may include a maturity date, a principal amount and an interest amount. The forward purchase contract may obligate a holder of the forward purchase contract to purchase a quantity of equity securities of an issuer of the unit for a price equal to the stated amount of the unit no later than a settlement date specified in the forward purchase contract. In addition, the forward purchase contract may further obligate the issuer of the unit to pay a purchaser of the unit a forward purchase contract payment at issuance of the unit and possibly additional forward contract payments after issuance.

Abstract: A convertible security structured for issuance to at least one investor by an issuer. The convertible security includes a make-whole premium that is payable to the at least one investor upon conversion following occurrence of a fundamental change involving the issuer of at least one underlying security into which the convertible security is convertible, wherein the make-whole premium is determined by using a methodology established at one of prior to issuance and issuance of the convertible security that references a value of an option embedded in the convertible security.