Call Spread Unwinds

When convertible bonds are repurchased or a change of control triggers the need to sell back call spreads to banks (referred to as “unwinding”), it involves highly intricate and nuanced financial transactions. Banks, serving as counterparties, have significant discretion in calculating the unwind amount. This presents a conflict of interest that can disadvantage issuers. ICR Capital’s Convertible and Equity Derivatives Advisory team offers significant value to clients by acting as an independent advisor who advocates for your interests and brings transparency to this complex process.

Our team of experienced advisors specialize in call spread unwind transactions and work closely with you to achieve the best pricing.

Our services encompass all aspects of the transaction including:

  • Analyzing the value of the call spread
  • Reviewing existing documentation
  • Assessing accounting and tax implications
  • Negotiating favorable terms

We act as an extension of your team, guiding you throughout the process with valuable insights and support, aiming for the best possible outcome.