Yes indeed Percy :) I wonder if they'll run the ruler over the Turner Bonds TNRHB ?
https://www.nzx.com/files/attachments/242679.pdf
Interesting to note the conversion / redemption terms are the lesser of a 5% discount to 90 day VWAP leading up to 30 Sept 2018 or $3.75.
The original valuation of the option to convert these to shares at $3.75 was originally valued at 3-5 cents per share when the SP was $3.12 mid 2016. With over 18 months to go and the bonds now capturing all the upside but none of the downside yesterday the hound went hunting for his trusty Black and Schoals Option pricing model
http://www.tradingtoday.com/black-scholes to value the option element of these bonds and discovered a very interesting result.
Depending on variables and after checking on two other option pricing models today I see fair value of the option content of these bonds as 29 - 50 cents per bond. Fair value including the capital 1.00 value of the bond is thus $1.29-$1.50, last trade $1.065 Given the company itself is performing well and growing strongly the bonds appear to pay an attractive return of 6.5% and capture all of the upside but none of the potential downside.
Disc: Hold both the shares and bonds, (more bonds than shares).