Symantec Corporation Convertible Notes With Call Spread Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

The Board of Directors of Symantec Corporation Ask for an independent opinion on the important decision of funding. Symantec has been working with a number of investment banks on a plan to raise debt to buy back shares. The consultant concluded that it would be an interesting plan of financing, while redemption will immediately lead to an increase in financial leverage of the company Symantec, the conversion of notes in the future will lead to a reduction in leverage at the cost of potentially significant dilutive capital firm. More interesting is that the company was in talks with investment banks to buy call spreads on its own stock, covering the same number of shares will be issued to the holders of bonds with conversion. After considering the proposal, the consultant was trying to understand the motivation of the structure of the transaction. Why Symantec decided to issue convertible bonds, and why should it intend to buy the call spread? "Hide
by Walid Busaba, Zeigham Khokher, Guorong Yan Source: Richard Ivey School of Business Foundation 7 pages. Publication Date: September 19, 2012. Prod. #: W10025-PDF-ENG