Morgan Stanley

Serkan Savasoglu

Nathan McMurtray

Kevin G Woodruff

Jonathan M Ross

Tammy Serbee

James John Hill

Rizvan Dhalla

Scott Greenberg

Jane Guttridge

Jeffer M Choudhry

David Oakes

A straight debt security may include a maturity component, a reset component, and a remarketing component. In general, the maturity component provides a maturity term of the straight debt security. The reset component specifies the terms and conditions for resetting a yield on the straight debt security. The remarketing component provides terms and conditions for remarketing the straight debt security to new investors. After remarketing, the straight debt security remains outstanding and potential recapture of excess tax benefits is postponed until the straight debt security ceases to be outstanding.

Systems and methods for remarketable fixed income securities

A unit may include a forward contract and a remarketable security that secures performance of obligations of the forward contract. The forward contract may require a holder to purchase a quantity of stock from an issuer at a settlement price on or before a settlement date. The remarketable security may have an issue denomination and a maturity date that is later than the settlement date. At the time of issue, the unit may provide that the remarketable security is to be offered to new holders at a remarketing time at a remarketing denomination that is different from the issue denomination. The unit also may provide, at time of issue, that the remarketable security is to be remarketed with a remarketing coupon frequency different from an issue coupon frequency, without subordination to senior debt of the issuer, and/or without a previously available interest rate deferral option to the issuer.

Enhanced remarketable securities

The present invention is directed to a method comprising the step of issuing one or more convertible hybrid securities by an issuer to one or more investors. The issued hybrid securities may have (1) a legally enforceable covenant (e.g., an RCC) and (2) a mandatory deferral which may require the issuer to withhold certain payments upon an occurrence of specified events. The hybrid securities may be convertible by the investor or callable by the issuer. Upon conversion by an investor, the issuer may make a payment to the investor in an amount of preferred stock up to the par value of the hybrid securities and an amount of common stock for the amount paid over the par value of the hybrid securities. The preferred stock may comprise a dividend rate. The dividend rate may be (1-statutory tax rate) times a coupon for the hybrid securities. The issuer may settle with the investor, or all of the investors, upon the issuer calling the hybrid securities.

Convertible hybrid securities

A method for increasing an amount of a security available to an investor for borrow is disclosed. The method includes purchasing a first quantity of a security, and entering into a pre-paid forward purchase contract to subsequently deliver a second quantity of the security to a first entity. The method also includes lending a third quantity of the security to an investor.

System and method for increasing an amount of a security available for borrow

A method of providing a liquidity facility for a business entity is disclosed. According to various embodiments, the method comprises offering for sale a unit issued by an issuer. Each unit comprises a credit linked note, wherein the credit linked note is linked to the credit of the business entity. Interest on the notes is funded, at least in part, from (1) income received by the issuer from an interest rate swap counter-party under an interest rate swap agreement, wherein the issuer pays the interest rate swap counter-party income received on assets held by the issuer, wherein the assets are purchased using proceeds from the issuance of the units, and (2) payments from the business entity to the issuer pursuant to a credit agreement between the business entity and the issuer.

Method for providing a liquidity facility

A convertible security structured for issuance to at least one investor by an issuer. The convertible security includes a make-whole premium that is payable to the at least one investor upon conversion following occurrence of a fundamental change involving the issuer of at least one underlying security into which the convertible security is convertible, wherein the make-whole premium is determined by using a methodology established at one of prior to issuance and issuance of the convertible security that references a value of an option embedded in the convertible security.

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New York, NY, United States of America

Serkan Savasoglu