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03 / Financing terms · selected comparisons

Convertible premiums.

What issuers give up in conversion premium, and what capped calls add back.

Randeep Bubbra | Lawyer | Making defence financeable

25%–45%conversion premium5 findings · data to 27 Oct 2026
Benchmark

Convertible premiums

Without a capped callWith a capped call
0%10%20%30%40%50%201617181920212223242526Aerojet Rocketdyne US$300m 2.25% convertible senior notes due 2023: premium 36.8%, coupon 2.25%Parsons US$350m 0.25% convertible senior notes due 2025: premium 35%, coupon 0.25%Rheinmetall €1bn convertible bonds (2028 and 2030 series): premium 45%, coupon 2.25%Parsons US$700m 2.625% convertible senior notes due 2029: premium 25%, coupon 2.625%BWX Technologies US$1,100m convertible senior notes due 2030: premium 32.5%, coupon 0%

Terms at pricing, quoted from the issuer's pricing release on /markets/.

Show the figures
PricedIssuePremiumCouponCap above share price
10 Nov 2025BWX Technologies US$1,100m convertible senior notes due 203032.5%0%100%
27 Feb 2024Parsons US$700m 2.625% convertible senior notes due 202925%2.625%75%
31 Jan 2023Rheinmetall €1bn convertible bonds (2028 and 2030 series)45%2.25%—
20 Aug 2020Parsons US$350m 0.25% convertible senior notes due 202535%0.25%—
9 Dec 2016Aerojet Rocketdyne US$300m 2.25% convertible senior notes due 202336.8%2.25%—
  1. 01

    5 convertibles with terms on file priced at conversion premiums of 25%–45%; the median is 35%.

  2. 02

    Since 2024, 2 deals priced at a median 28.8% premium.

  3. 03

    2 came with capped calls, lifting the effective conversion price to a median 88% above the share price.

  4. 04

    1 pay no coupon at all; investors take their return from the conversion option.

  5. 05

    The highest premium is Rheinmetall €1bn convertible bonds (2028 and 2030 series) at 45%.

Next: Government money

Selected observations from the register, not a market census, investment recommendation or legal advice. Working on a deal like these? Book 20 minutes with Randeep to see how your terms compare.

Randeep Bubbra
InfraDefence Weekly

The week in defence finance, read from the filings.

Deals, terms and the clauses behind them, for the people financing primes, mid-tiers and new defence technology. By Randeep Bubbra.

Working on a financing like this? Book 20 minutes with Randeep to see how it compares.

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