KENNESAW, Ga., /PRNewswire-FirstCall/ -- Conversion Solutions, Inc. (OTC Pink Sheets: CVSU) announces that during the SB-2 filing process the following current events have taken place.
CVSU would like to announce the signing of a Global Funding agreement with Ismet Paez of The Caracas Group. The funding agreement brings 500 Million United States Dollar denominated Global, Bonds on the Republic of Venezuela with a 13.625% annual coupon, to CVSU's financials. The bond has been loaded in the Euroclear system with the following codes:
ISIN Number: US922646AT10
Common Code: 008975540
CUSIP: 922646AT1
BB Registration: A-989/08/01 to A-989/08/19
The bond also trades under symbol (VEZD) on the Deutsche Borse Frankfort market.
"We have been working diligently toward Hypothecation of the Bonds for liquidly. We have received written pre-approval for a credit line on the bonds and are in the final phases of execution. This process is very important to the launch of CVSU's business model for the funding of the projects and Asset Backed Security (ABS) origination," stated Ben F. Stanley, COO.
"The Board of directors has decided to complete the Credit facility prior to filing the SB-2; we feel that the addition of this asset is beneficial to the shareholders value," stated Rufus Paul Harris, CEO.
dot dot dot....
----------------------------------
REPUBLIC OF VENEZUE 13.6250 15/08/18 US922646AT10 008975540 13.625 USD 06 Aug 1998 15 Aug 2006 14 Aug 2006 G BOND 31 Jul 1998
Euroclear sitr posted above. 13.625 is the interest rate
Time for a little education, since some I fear need it in spades.
What is a Bond? It is a DEBT SECURITY, notice the word "Security". An issuer of a Bond, does so to raise money as a LOAN, that is given for a SET TIME and INTEREST rate (YIELD). The time of a BOND is set by its MATURITY DATE, and can be as long as say, 30 odd years.
Since Bonds are Debt Securities, they can be TRADED. In fact the Issuer of a Bond does so by OFFERING its Bond to investors much like companies do via IPOs. Thus, Bonds are a Security, much like Stock, that can be traded as such.
Therefore, we have a thing called a BOND MARKET, where investors can invest there money in Bonds, and Bonds have a price based on their YIELD, MATURITY and most importantly CREDIT! The credit part is very important since the risker the issuer of the Bond, the more YIELD/INTEREST they have to offer to make it attractive enough to investors.
They are a few different TYPES of Bonds, namely, GOVERNMENT Bonds and CORPORATE Bonds. Government Bonds are generally considered safer since they are backed by a GOVERNMENT as opposed to a CORPORATION, and have lower yields. But credit ratings vary for Governments JUST LIKE Coroprations too, so a Bond from say, SOUTH AMERICA, would be considered risker than a US or UK issued Bond. Yet, a South American Bond should still be considered safer than a Corporate Bond. Unless perhaps we are comparing it to a Corporation with say a AAA Credit Rated Company -- and a SOUTH AMERICAN Bond would offer a greater YIELD than say a US TREASURY BOND.
So this is why investing in Bonds is considered SAFE MONEY. And to invest in a Venezulan Bond would be considered safe too, no? Unless we invade that Country and bomb it to bits that is!
Now, remember the part about a BOND MARKET? Right, so when the issuer offers a Bond for say, I don't know $800Million, do you think they call up one guy a say "Hey man, give my $800 million, and I give you a piece of paper"? Of course not, it is offered just like any other security and ppl buy as MUCH OF IT AS THEY WANT, just like shares in a company.
Now, do you think this piece of paper, that constitues the Bond, has all those investors' names on it? You know, all those ppl that bought INTO that Bond? Don't be silly, the Bond is the BOND and it is openly traded.
So guess what? If you call "someone" to ask if say, Mr. Smith owns such and such Bond, do you think you will get an answer like, "Oh yeah I see Mr.Smith's name here right on my screen" -- of course not. Much in the same way, as if you asked Etrade how many shares I HAVE IN CSHD, they won't and CANNOT tell you. Sound familar? Of course it does.
Finally, remember some chatter about "Cashing In a Bond". Funny choice of words, or rather, funny INTERPRETATION of those words, since the ONLY person that could "Cash in a Bond", would be the ones that ISSUED the bond. And even that is contrived since, the Bond is the Bond, and cannot be "cashed" or surrendered anyway since it is SET and BACKED till its Maturity Date! The only "cashing in" you could do, would be to SELL your POSITION in a particular bond on the open market. And that can even be interpreted in a different way when are talking about BUSINESS.
Since, these Bonds are SECURITIES, you can use them as COLLATERAL. For what say? A loan! That right, a loan, that you have whilst still holding your position in the BOND, which in effect, allows you to CASH OUT YOUR FUNDS.
There is a smart word for this, and it starts with an "H". Smart business ppl do this, when they can earn INTEREST at a HIGHER YIELD, than the interest rate they are BORROWING at.
posted
mnvestor LOL...thanks...now...could you go post that up on the hot stocks thread? some individuals are "not understanding"...perhaps they will read your words and a light bulb will go off....
-------------------- #1 Rule: Protect your capital! #2 Rule: Never fall for the BS on the boards!
IP: Logged |
posted
Ok mnvestor, so does that mean CSHD owns xxx million worth of the bond or xxx million shares of the bond? I'm just trying to understand how bonds work. I don't doubt that CSHD has this bond or that they've lied to us about it.
Thanks for the above explanation...I feel like I'm on the way to understanding bonds a little better.
Topic Closed
UBBFriend: Email this page to someone!
Printer-friendly view of this topic
![[Smile]](smile.gif)
