1. New debt is a convertible bond, which is a financing method for listed companies. When a listed company issues bonds, investors can choose to buy new bonds. After the new debt is purchased, it is not guaranteed to be purchased, but it is selected by lottery. Successful investors can buy new bonds at the issue price. Generally speaking, after the new debt is listed, investors can sell the new debt to get the difference. However, it should be noted that it is impossible for new debt to make money 100%. We should also pay attention to the risk of listing discount, and new bonds can also be converted into shares in the later period.
2. Convertible bonds are bonds that bondholders can convert into common shares of the company at the price agreed at the time of issuance. If the bondholders do not want to convert shares, they can continue to hold the bonds until the repayment period expires, recover the principal and interest, or sell them in the circulation market. If the holder is optimistic about the appreciation potential of the bond issuing company's shares, he may exercise the bond-to-equity swap after the grace period, and the bond issuing company shall not refuse to convert the bonds into shares at the predetermined conversion price. Bond interest rates are generally lower than those of ordinary companies. The issuance of convertible bonds by enterprises can reduce the financing cost. The holder of convertible bonds also has the right to sell the bonds back to the issuer under certain conditions, and the issuer also has the right to redeem the bonds under certain conditions.