Interest on Conversion Clause Samples
The 'Interest on Conversion' clause defines how accrued interest is handled when a debt instrument, such as a convertible note, is converted into equity. Typically, this clause specifies whether the unpaid interest up to the conversion date is added to the principal and converted into shares, or if it is paid out separately in cash. For example, if an investor holds a convertible note that accrues interest, upon conversion to equity, the total amount of interest accrued may be included in the calculation of how many shares the investor receives. This clause ensures clarity and fairness in the treatment of interest during conversion, preventing disputes and aligning expectations between parties.
Interest on Conversion. Where the Principal is converted to Securities pursuant to the terms hereof, any Interest payable in connection with the Note shall also be converted to Securities, subject to Section 2.7 below.
Interest on Conversion. No payment or adjustment shall be made on exercise of Conversion Rights for any interest which otherwise would have accrued on the relevant Bonds since the last Interest Payment Date preceding the Conversion Date relating to such Bonds (or, if such Conversion Date falls before the first Interest Payment Date, since the Closing Date).
Interest on Conversion. If any notice requiring the redemption of the Bonds is given pursuant to Condition 8.2 on or after the 15th business day prior to a record date which has occurred since the last Interest Payment Date (or in the case of the first Interest Period, since the Closing Date) in respect of any Dividend or distribution payable in respect of the Reference Stock where such notice specifies a date for redemption falling on or prior to the date which is 14 days after the Interest Payment Date next following such record date, interest shall accrue at the rate provided in Condition 6.1 on Bonds in respect of which Conversion Rights shall have been exercised and in respect of which the Conversion Date falls after such record date and on or prior to the Interest Payment Date next following such record date in respect of such Dividend or distribution, in each case from and including the preceding Interest Payment Date (or, if such Conversion Date falls before the first Interest Payment Date, from the Closing Date) to but excluding such Conversion Date. The Issuer shall pay any such interest by not later than 14 days after the relevant Conversion Date by transfer to a US dollar account in accordance with instructions given by the relevant Bondholder in the relevant Conversion Notice.
Interest on Conversion. (a) Except as provided in Section 6.6(b), no interest shall accrue from the Interest Payment Date immediately preceding a Conversion and Exchange Date (or if the Conversion and Exchange Date falls before the first scheduled Interest Payment Date, since the Issue Date) on Notes in respect of which Conversion and Exchange Rights have been exercised.
(b) If any notice of redemption of any Notes is given as described in Section 3.2 during the period starting on the seventh day prior to a record date in respect of any dividend payable in respect of the Ordinary Shares and ending on the Interest Payment Date next following that record date where such notice specifies a Redemption Date falling on or prior to the date which is 14 days after the Interest Payment Date next following such record date, interest shall accrue on Notes in respect of which Conversion and Exchange Rights shall have been exercised and in respect of which the Conversion and Exchange Date falls after such record date and on or prior to the Interest Payment Date next following such record date, from the preceding Interest Payment Date (or, if such Conversion and Exchange Date falls before the first Interest Payment Date, from the Issue Date) to such Conversion and Exchange Date. Any such interest shall be paid by the Issuer not later than 14 days after the relevant Conversion and Exchange Date by check, or by transfer to, an account as set forth in Section 2.4.
Interest on Conversion. If any notice requiring the redemption of any Notes is given pursuant to Condition 7(b) or 7(c) on or after the fifteenth Luxembourg business day prior to a record date which has occurred since the last Interest Payment Date (or in the case of the first Interest Period, since the Closing Date) in respect of any Dividend or distribution payable in respect of the Common Shares where such notice specifies a date for redemption falling on or prior to the date which is 14 days after the Interest Payment Date next following such record date, interest shall accrue at the Interest Rate on Notes in respect of which Conversion Rights shall have been exercised and in respect of which the Conversion Date falls after such record date and on or prior to the Interest Payment Date next following such record date in respect of such Dividend or distribution, in each case from and including the preceding Interest Payment Date (or, if such Conversion Date falls before the first Interest Payment Date, from the Closing Date) to but excluding such Conversion Date. The Issuer shall pay any such interest by not later than 14 days after the relevant Conversion Date by transfer to, a US dollar account with a bank in the United States in accordance with instructions given by the relevant Noteholder in the relevant Conversion Notice.
Interest on Conversion. Accrued interest unpaid on the Conversion Date shall not be included in the principal amount hereof for the purpose of computing the number of shares of Common Stock issuable upon Conversion. Interest shall cease to accrue on the principal amount to be converted from and after the Conversion Date, but all accrued and unpaid interest shall be paid in cash by the Issuer to the Holders on the Conversion Date with respect to all of the Debenture principal amount then converted into Common Stock.
Interest on Conversion. Upon conversion, and subject to Sections 3.01 and 4.08, each Holder shall be entitled to receive Ordinary Shares in respect of the sum of (x) the Principal Amount of all Initial Notes so converted by such Holder and (y) the Principal Amount of all Additional Notes so converted by such Holder, plus (z) all interest accrued but unpaid since the Interest Payment Date next preceding the date of conversion.