Financial instruments
First Claim
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1. For an issuer, a method of issuance of a convertible note, comprising the steps of:
- acquiring or holding a significant minority of a target company'"'"'s conventional stock;
entering into an arrangement with the target company which results in an allocation of a dividend stream to the issuer;
issuing medium term convertible notes which are associated with an enhanced coupon or dividend rate.
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Abstract
The invention provides new forms of financial instruments and methods for generating or issuing them. A company replaces some of its held or recuperated conventional stock with synthetic capital stock, or equity stock which has no dividend or franking credit. Some or all of the dividend stream or franking credits associated with the recuperated or held stocks are diverted to an issuer of medium term convertible notes. The issuer of the notes uses the diverted streams of dividends or franking credits to boost the yield of the notes and for other purposes.
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10 Claims
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1. For an issuer, a method of issuance of a convertible note, comprising the steps of:
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acquiring or holding a significant minority of a target company'"'"'s conventional stock;
entering into an arrangement with the target company which results in an allocation of a dividend stream to the issuer;
issuing medium term convertible notes which are associated with an enhanced coupon or dividend rate. - View Dependent Claims (2, 3, 4, 5, 6, 7, 10)
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8. For a company having conventional stock, a method of issuing synthetic capital stock, comprising the steps of:
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recuperating or holding a portion of its convention stock;
entering into an arrangement with an issuer of notes whereby the dividend stream or franking credits of the recuperated or held portion is diverted to the issuer;
the company then issuing synthetic capital stock to replace the recuperated or held portion, the synthetic capital stock not having any associated dividend or franking credits. - View Dependent Claims (9)
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Specification