Convertible Debt is similar to Convertible Preferred Stock, but it ranks senior to Preferred Stock in the event of a liquidation of the company.
The Issuer promises to pay the bondholder a specified amount of interest "coupon" for a specified time period and to repay the debt at the end of a specified period the "maturity of the bond". Debt that can be converted into equity, usually at the option of the debt holder. Convertible Debt is similar to Convertible Preferred Stock, but it ranks senior to Preferred Stock in the event of a liquidation of the company. Any director, officer or general partner of the Issuer.