〇 海外の子会社に親子ローンをしている企業も多いことでしょう。その会社の財務の健全化という意味では資本金・資本剰余金の増加ですね。従い、Debt-Equity Swapの利用も一案です。仮に配当優先株にSwapしても、利益が出てなければ配当しなくても良いですからね。その場合、ローンの金利部分をどうするかですね。今まで金利を貰っていたのに、この部分も優先株にして、利益が無いので配当しないということになれば、国税局が寄付金課税をしてくるかもしれません。まあ、それはさておき、今回は、DES(Debt-Equity Swap)の簡単な一例を書いてみましょう。一種のTerm Sheetですね。
〇 設計の例：Non-voting right, Non-cumulative, Non-participating, Convertible Preference Shares with Liquidation Preferencesで考えてみましょう。株主と子会社間の契約書と子会社の定款変更（優先株内容記載。総会承認等）が必要ですね。
1) Issue Price per share. e.g. $1,000/share (100 Ordinary shares when converted)
2) Number of shares to be issued (x above 1) = Total Issue Price = Loan Amount excluding accrued interest = $100,000,000
e.g. $1,000/share x 100,000 shares = $100,000,000
3) Dividend Preference
(a) Right to Dividend. The holder of the Convertible Preference Shares shall be entitled to receive, in preference to any dividends or distributions paid with respect to ordinary shares, when and if declared by the Board (or Shareholder’s Meeting), and out of any funds legally available therefor, cash dividends (the "Convertible Preference Dividends") at the rate of 10% of the Issue Price on each outstanding Convertible Preference Share.
(b) Priority. Unless the Convertible Preference Dividends have been declared and paid, the Company shall not declare or pay any dividend on ordinary shares.
(c) Non-Cumulative. The Convertible Preference Dividends shall not be cumulative, and the Company shall have no obligation to declare or pay dividends on the Convertible Preference Shares, whether or not the earnings of the Company are sufficient to pay such dividends in whole or in part.
(d) Non-participating = No Additional Dividends.
After the Convertible Preference Dividends shall have been paid, and if the Board elects to declare any dividends on ordinary shares, the holder of Convertible Preference Shares can’t participate in and is not entitled to enjoy such distribution of the dividends for ordinary shares.
4) Conversion (Conversion rightをどちらが持つかですが、会社側の例で、一部転換可の場合の例です)
(a) Optional Conversion. Each Convertible Preference Share may be converted, by the unanimous approval of the Board, into fully paid and non-assessable ordinary shares.
Partial conversion is possible – By the unanimous approval the Board, it shall decide number of Convertible Preference Shares to be converted into ordinary shares.
(b) Conversion Ratio. One Convertible Preference Share shall be converted into 100 ordinary shares of the Company.
(c) Mechanics of Conversion. Upon the notification from the Board of the conversion, the holder shall surrender the certificate(s) representing the Convertible Preference Shares, duly endorsed. The Company shall, as soon as practicable after such surrender, issue and deliver i) certificate(s) representing the number of ordinary shares to which such holder is entitled and ii) new certificate(s) representing the (remaining) number of Convertible Preference Shares not so converted.
5) Liquidation Preference （米国のVCの場合は、3 x とか4 x liquidation preferenceを求める場合もありますね。）
Upon any liquidation, dissolution or winding up of the Company (collectively called “Liquidation”), whether voluntary or involuntary, the holder of Convertible Preference Shares shall be entitled to be paid out of the assets of the Company available for distribution to its shareholders, an amount in cash equal to the aggregate Liquidation Preference (as defined below) at the date of payment, which amount shall be paid before any distribution or payment is made upon any ordinary shares.
Upon any such Liquidation, after the holder of Convertible Preference Shares has been paid in full the amounts to which they are entitled, the remaining assets of the Company may be distributed to the holders of ordinary shares.
Liquidation Preference:
Liquidation Preference measured per Convertible Preference Share shall mean an amount equal to the sum of (i) the Issue Price, (ii) an amount equal to the amount of cash dividends that would have been payable on such Convertible Preference Share had the Board declared and paid the Convertible Preference Dividends from the Issue Date to the date of such liquidating distribution, less any cash dividend amounts actually paid on such Convertible Preference Share during such period, plus (iii) without duplication, an amount equal to all declared and unpaid Convertible Preference Dividends.
〇 設計の例：Non-voting right, Non-cumulative, Non-participating, Convertible Preference Shares with Liquidation Preferencesで考えてみましょう。株主と子会社間の契約書と子会社の定款変更（優先株内容記載。総会承認等）が必要ですね。
1) Issue Price per share. e.g. $1,000/share (100 Ordinary shares when converted)
2) Number of shares to be issued (x above 1) = Total Issue Price = Loan Amount excluding accrued interest = $100,000,000
e.g. $1,000/share x 100,000 shares = $100,000,000
3) Dividend Preference
(a) Right to Dividend. The holder of the Convertible Preference Shares shall be entitled to receive, in preference to any dividends or distributions paid with respect to ordinary shares, when and if declared by the Board (or Shareholder’s Meeting), and out of any funds legally available therefor, cash dividends (the "Convertible Preference Dividends") at the rate of 10% of the Issue Price on each outstanding Convertible Preference Share.
(b) Priority. Unless the Convertible Preference Dividends have been declared and paid, the Company shall not declare or pay any dividend on ordinary shares.
(c) Non-Cumulative. The Convertible Preference Dividends shall not be cumulative, and the Company shall have no obligation to declare or pay dividends on the Convertible Preference Shares, whether or not the earnings of the Company are sufficient to pay such dividends in whole or in part.
(d) Non-participating = No Additional Dividends.
After the Convertible Preference Dividends shall have been paid, and if the Board elects to declare any dividends on ordinary shares, the holder of Convertible Preference Shares can’t participate in and is not entitled to enjoy such distribution of the dividends for ordinary shares.
4) Conversion (Conversion rightをどちらが持つかですが、会社側の例で、一部転換可の場合の例です)
(a) Optional Conversion. Each Convertible Preference Share may be converted, by the unanimous approval of the Board, into fully paid and non-assessable ordinary shares.
Partial conversion is possible – By the unanimous approval the Board, it shall decide number of Convertible Preference Shares to be converted into ordinary shares.
(b) Conversion Ratio. One Convertible Preference Share shall be converted into 100 ordinary shares of the Company.
(c) Mechanics of Conversion. Upon the notification from the Board of the conversion, the holder shall surrender the certificate(s) representing the Convertible Preference Shares, duly endorsed. The Company shall, as soon as practicable after such surrender, issue and deliver i) certificate(s) representing the number of ordinary shares to which such holder is entitled and ii) new certificate(s) representing the (remaining) number of Convertible Preference Shares not so converted.
5) Liquidation Preference （米国のVCの場合は、3 x とか4 x liquidation preferenceを求める場合もありますね。）
Upon any liquidation, dissolution or winding up of the Company (collectively called “Liquidation”), whether voluntary or involuntary, the holder of Convertible Preference Shares shall be entitled to be paid out of the assets of the Company available for distribution to its shareholders, an amount in cash equal to the aggregate Liquidation Preference (as defined below) at the date of payment, which amount shall be paid before any distribution or payment is made upon any ordinary shares.
Upon any such Liquidation, after the holder of Convertible Preference Shares has been paid in full the amounts to which they are entitled, the remaining assets of the Company may be distributed to the holders of ordinary shares.
Liquidation Preference:
Liquidation Preference measured per Convertible Preference Share shall mean an amount equal to the sum of (i) the Issue Price, (ii) an amount equal to the amount of cash dividends that would have been payable on such Convertible Preference Share had the Board declared and paid the Convertible Preference Dividends from the Issue Date to the date of such liquidating distribution, less any cash dividend amounts actually paid on such Convertible Preference Share during such period, plus (iii) without duplication, an amount equal to all declared and unpaid Convertible Preference Dividends.
