Convertible Securities
Convertible securities covers Debt which is:
- convertible into, or exchangeable for, other securities; or
- accompanied by a warrant or option to subscribe for or purchase other securities.
There are two Recognised Investment Exchanges (RIEs) in the UK which admit convertible securities to trading:
- the London Stock Exchange (LSE) operated the Regulated Market, and
- the LSE Professional Securities Market (PSM).
- PLUS Markets also operate three markets: PLUS Listed; PLUS Quoted and PLUS Traded.
Under the EU prospectus directive, the issuer must publish a prospectus regarding the convertible securities if these are being admitted to trading on a EU regulated market and/or if they are being offered to the public.
When a prospectus is not required under the prospectus directive and the issuer is seeking admission to a listed but unregulated market, eg the PSM, listing particulars regarding the convertibles securities must be prepared in line with the relevant listing rules and approved by the Global Debt Group.
Where a prospectus or listing particulars is required, it will need to be prepared in line with the relevant prospectus or listing rules, and approved by the Global Debt Group.
To be eligible for admission to the Official List, issuers of convertible securities must meet the requirements set out in LR 2 and LR 17.