Our Convertible Bonds guide has been updated to include a discussion relating to European and US issuers. This guide is intended to assist the treasury teams and in-house lawyers of corporate borrowers to assess the merits of convertible bonds as part of their funding programs and to better understand their terms, the timetable and related documentation.
The convertible bond market has been active as companies refinance converts issued during the pandemic. Driven by a high interest rate environment and ongoing macroeconomic uncertainty, companies issued over $86 billion in convertible bonds in 2024. Issuers turn to convertible securities as a strategic liability management tool, benefiting from lower interest costs relative to traditional debt and reduced dilution compared to equity. The increase in activity is expected to continue as many companies are now considering refinancing expensive debt like term loans and high yield bonds with convertible debt and refinancing convertible debt with new convertible debt (this addresses upcoming maturities and extends out maturities).
Resource Downloads
Visit us at mayerbrown.com
Mayer Brown is a global services provider comprising associated legal practices that are separate entities, including Mayer Brown LLP (Illinois, USA), Mayer Brown International LLP (England & Wales), Mayer Brown (a Hong Kong partnership) and Tauil & Chequer Advogados (a Brazilian law partnership) and non-legal service providers, which provide consultancy services (collectively, the "Mayer Brown Practices"). The Mayer Brown Practices are established in various jurisdictions and may be a legal person or a partnership. PK Wong & Nair LLC ("PKWN") is the constituent Singapore law practice of our licensed joint law venture in Singapore, Mayer Brown PK Wong & Nair Pte. Ltd. Details of the individual Mayer Brown Practices and PKWN can be found in the Legal Notices section of our website. "Mayer Brown" and the Mayer Brown logo are the trademarks of Mayer Brown.
© Copyright 2025. The Mayer Brown Practices. All rights reserved.
This Mayer Brown article provides information and comments on legal issues and developments of interest. The foregoing is not a comprehensive treatment of the subject matter covered and is not intended to provide legal advice. Readers should seek specific legal advice before taking any action with respect to the matters discussed herein.
