Anyone here good with stocks and bonds and their meanings?
 

"acting for Solstarz in relation to its issue of a 10 million convertible bond loan with Webster Bank"


I am arguing with someone about the meaning of the above sentance.

He is saying that this company was given 10 mill in cash by that bank.

I am saying the company put up 10 mill worth of bonds for purchase through the bank.

Anyone know better here?

i think you are correct. bonds are agreements between a company and investors where investors are giving money to the company who is agreeing to pay it back at a later date with interest. so they are basically issuing bonds through the bank.

What does that mean exactly though? They received 10 mill in cash , or have to first sell the bonds to get cash?

The bank gave the company 10mil the company gave the bank 10mil in bonds that can be converted into equity.

Can any company do that? What do you think the prerequisites are for something like that?

Well to have common stock they need to follow many rules and regs from the sec. Other then that any company can do it. I mean corp. bonds are rated by different agencies so if they are no good it will just be a junk bond.