Convertible Debt: Winning Converts

June 28, 2006

David Michaels, a partner in Fenwick & West's Corporate Group, was recently quoted in The Recorder's article entitled "Convertible Debt: Winning Converts." On his representation of Symantec's $2 billion convertible notes offering, Michaels called it "the Valley's largest convertible debt offer this year."

In recent years there has been an increase in the complexity of convertible debt offerings which, Michaels said, helps to benefit all parties. Now, when holders convert, they can get a mix of stock and cash. As the interest in more complex debt restructuring deals grows within Silicon Valley companies, so does the amount of legal work involved.

"I like the complexity," Michaels said. "There are points to be negotiated and customized at every deal. You do need to try and mesh a very complicated set of terms with what the company is looking for, making sure the terms are what everyone is expecting."

Michaels' practice focuses on securities transactions and he has had primary responsibility for a number of transactions involving public and private companies. Symantec is a Cupertino-based provider of software for security applications.

Complete article from The Recorder writer Kellie Schmitt (subscription required).