Write a case study of a firm that has issued convertible securities (preferred or bond). Discuss why the firm issued the convertible securities. Discuss problems that firm had in issuing the...

The entity which has been considered for the issue of convertible bond is GNC Holdings.
As of 31
st
December, 2015, the company’s total consolidated long term debt amount to $1.45
billion, of which $235 million is related to 1.5% convertible senior notes issued by the company
which are due in 2020. These notes were issued in a private offering in the month of August
2015. This was the first convertible bond deal which company did. The company is leading
global specialty retailer in space of healthcare and wellness. The objective of the convertible
bond issue is to use the proceeds of $100 million to repurchase common shares in the market.
The remaining $150 million was intended to be used in repaying borrowings under long term
loan facility. The conversion rate decided in this case is 15.1156 of class A common shares, per
$1000 principal notes of amount (10k of GNC Holdings, 2017). The conversion price of the...