Banc Star Financial’s convertible debt instruments team creates hybrid equity-linked solutions that are tailor-made for clients in emerging growth industries and new markets. Our expertise extends across all formats, from exempt private transactions, traditional “Regulation D” placements, and fully registered debt securities.

We rely on Banc Star Financial’s status in the international investment and merchant banking community to full service marketing aftermarket support for all convertible debt instruments.

Banc Star Financial’s Convertible Debt Philosophy

As with all of our services, Banc Star Financial aims to add value with a proprietary approach and tools for fundamental credit research and analytical modeling of every convertible debt engagement and transaction. We do not remain dependent on any one strategy or financing source, but examine all options that a client might consider for convertible debt financings. We balance several critical factors in every engagement:

  • We balance risk and rewards by measuring the impact of rising equity prices against the need to protect against declines.
  • We adjust the duration of a convertibility option as a function of corporate and industry fundamentals.
  • We use the most up-to-date modeling tools to value convertible debt with big data analysis of demographics, political factors, and global economic trends.
  • Our analysts perform in-depth fundamental analysis to measure credit and equity prices in an objective environment.

We are uniquely attuned to the growth and appeal of convertible debt instruments in the international markets, which currently account for more than half of all convertible debt products. Those markets are diverse, with products and features that zero coupon bonds and mandatory convertible debt instruments in every conceivable sector and industry. We structure convertible debt transactions to appeal to all participants in those markets, including hedge funds, arbitrageurs, and private equity investors, and institutional managers.