In a COVID-19 economy, issuing convertible notes may be attractive to sponsors because the returns can be near equity-like. With the potential for further equity upside, and a priority position in the capital structure and potentially negative operational and governance controls, notes are a means of raising debt from alternate lenders when mainstream lenders may not be available.

Notes also provide issuers with an alternative to heavily discounted equity raising.

In our guide, we explore:

• Commercial considerations
• Key regulatory considerations including shareholder approval, ASX rules and FIRB, and
• How to address the timing and risk issues raised by the regulatory considerations