I am writing this as a follow-up to my published article on DHT Holdings (DHT) Convertible Notes. The main point of my article was that the notes were a better investment than DHT common shares because the conversion price adjusts lower with each dividend declaration. Noteholders effectively hold a zero-cost call option on DHT while getting paid 4.5% annual interest.
Several readers commented that DHT has the option to call the notes prior to their maturity, which could essentially negate any dilution risk.
DHT can indeed redeem part of, or the entire $125m convertible debt