skip to content
  1. Home
  2. >
  3. Questions
  4. >
  5. PBH: Hi- PBH has just issued a debenture paying 5. [Premium Brands Holdings Corporation]
You can view 0 more answers this month. Sign up for a free trial for unlimited access.

Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Hi- PBH has just issued a debenture paying 5.5%- would this be a decent fixed income investment for a medium risk ? How will the stock impact this?
Asked by Scott on March 19, 2025
5i Research Answer:

Yes, we would be comfortable with these for fixed-income investors. It is a relatively small company but we would have little in the way of credit concerns here. Note the conversion price is well above the current market price, so we would treat these as straight, non-convertible debt for the time-being. Generally, converts are not great for stock prices, as investors sell and or arbitrage the new issue. But PBH shares absorbed the news fairly well.