As expected the four-year deal has a highly defensive structure, which guarantees investors a fixed yield for a two-year period whether or not trigger events occur that turn the transaction from a straight debt instrument into an exchangeable.
What happens with most going-public bonds is that investors receive a fixed yield and no equity optionality until a trigger event, which sees them give up some yield in return for the value of an equity option and exchange rights. From the borrower's perspective, normal debt funding costs are maintained until a trigger event, at which point a lower cost of debt funding is secured in return for ceding equity optionality.
In this case, however, investors are...
