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Constellation Software Inc. Unsecured Subordinated Floating Rate Debentures Series 1 (CSU.DB)
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Q: hello 5i:
regarding the warrants that will eventually trade for the CSU bonds: can you hazard a guess as to what price range they might trade at; possibly looking back and seeing what others have done in this situation?
thanks
Paul L

Asked by Paul on August 18, 2023

5i Research Answer:

There is not much precedent here; price might be in the $1 to $3 range, reflecting the fact that a conversion adds 12 years to maturity of the bonds by eliminating the possibility of a five-year redemption. With the bonds at a premium price today over par, this then amortizes the loss on maturity over a longer time period.

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