In these deals NIR would provide cash to a publicly-traded company in exchange for a convertible debenture that entitled NIR to receive interest and repayment in the form of cash or discounted equity securities.
The recent sizable underwriting of a 10-year IBM debenture with a 7.625% coupon is a leading indicator of the prospective spread contraction coming between high-grade corporates and 10-year Treasuries.
If Clearwire is unable to repay the PIK Debenture during this 30 day period, it would be entitled to convert the principal amount and accrued interest on the PIK Debenture into a note on terms comparable to the 2015 Senior Secured Notes previously repaid, having a maturity of December 1, 2015.