A Case Study On The Motivation And Effect Of Exchangeable Bonds Issued By Phoenix Group

Exchangeable bond is a kind of financial instrument with both debt and equity.It endows bondholders and issuers with call options of holding companies.With low financing cost,little impact on stock price and flexible terms design,exchangeable bond has been favored in recent years.In 2016,convertible bonds ushered in a blowout development stage,and its issuance has positive significance for the capital market.With the improvement of the national education level,the pursuit of spiritual culture is increasingly prominent.With the continuous improvement of the cultural level of Chinese residents and the gradual formation of reading habits,the publishing media industry has ushered in a development opportunity,and further promoted the cultural strategy and industrial chain layout of phoenix group.With the continuous enrichment of its cultural industry,the continuous expansion of the enterprise scale,and the continuous increase of the capital required for operation,how to choose the most suitable financing method in accordance with the group’s current development strategy among many plans is a problem that phoenix group is constantly solving.As a new financing method,the development of convertible bonds in China is not yet very mature.In particular,Chinese scholars have few specific cases to study publicly offered convertible bonds,and most of them are based on the perspective of reduction and the risk of issuance terms,and there are few papers to study from the perspective of financial performance and financial risk.This paper is divided into five chapters.In the first chapter,the research background,significance and research methods of the whole paper are introduced.On this basis,the second chapter describes the relevant theories of this paper,and summarizes the relevant literature,in addition to the concept of exchangeable bonds,classification,and the difference between convertible bonds.The third chapter introduces the issuing background of "16 phoenix EB",briefly introduces the issuing process of the issuer phoenix group,the target company phoenix media and "16 phoenix EB",and analyzes the issuing motivation.The fourth chapter mainly analyzes the financing effect,financial performance,financial risk and market response from different perspectives,and further verifies the issuing motivation of the exchangeable bonds issued by phoenix group.The last chapter summarizes the successful experience of phoenix group in issuing exchangeable bonds and draws inspiration.Through the calculation and analysis of relevant financial indicators,the author of this paper finds that phoenix group issues exchangeable bonds to supplement the liquidity of the enterprise,reduce the financing cost,improve the profitability of the enterprise to some extent,optimize the debt structure of the enterprise,and improve the solvency.In addition,by issuing exchangeable bonds to raise funds to repay maturing debt also reduces the financial risk of the enterprise.However,when issuing exchangeable bonds,you also need to pay attention to risks such as term setting.Therefore,while deepening the application of exchangeable bonds according to the actual needs of enterprises,issuers should choose favorable issuing time,set reasonable issuing terms and pay close attention to the debt level of enterprises.