Hello,
It has been mentioned that Tesla can "induce" conversion by lowering the current conversion price (~$360) all the way down to $250 on their March 2019 Bonds. I assume this would be done by increasing the Conversion Rate (number of shares per $1000) which is currently at 2.7788. However what is the limit for this conversion rate increase.
"We are permitted to increase the applicable conversion rate of either or both series of notes by any amount for a period of at least 20 business days if our board of directors or a committee thereof determines that such increase would be in our best interest. " Section 41.
It has been mentioned that Tesla can "induce" conversion by lowering the current conversion price (~$360) all the way down to $250 on their March 2019 Bonds. I assume this would be done by increasing the Conversion Rate (number of shares per $1000) which is currently at 2.7788. However what is the limit for this conversion rate increase.
"We are permitted to increase the applicable conversion rate of either or both series of notes by any amount for a period of at least 20 business days if our board of directors or a committee thereof determines that such increase would be in our best interest. " Section 41.
