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.
Issuers currently have two markets on which to have their convertible securities admitted to trading:
- the London Stock Exchange (LSE) Regulated Market, which is a EU regulated market under MiFID; and
- the LSE Professional Securities Market (PSM), which is regulated by the LSE but is not a regulated market under MiFID.
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 the exchange regulated 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.