Compulsory Convertible Debentures: A Balanced Approach To Fundraising
Compulsory Convertible Debentures (CCDs) offer a unique solution for companies navigating the choice between equity and debt financing. CCDs begin as debt instruments, allowing businesses to raise funds without immediately diluting ownership. However, unlike traditional debt, CCDs convert into equity at a specified time or when certain conditions are met, such as hitting financial benchmarks….