Document background
The Convertible Bond Agreement is a key financing document used when companies seek to raise capital through debt that can later be converted into equity. This instrument is particularly valuable for growing companies that need funding but want to defer equity dilution. The agreement, governed by Australian law, must comply with the Corporations Act 2001 (Cth) and related regulations. It details the complete terms of the bond issuance, including principal amount, interest rate, maturity date, conversion price and mechanism, events triggering conversion, and protection for both issuer and bondholders. This document is commonly used in growth financing, acquisition financing, or restructuring scenarios, offering investors the security of debt with potential equity upside.
