A hybrid security that by its terms converts into a variable number of shares of common stock of the issuer based on the market price of the common stock at the time of conversion. Mandatory convertible securities are typically sold as units consisting of (i) a forward contract to purchase common stock on a predetermined date at a price based on a disclosed formula and (ii) debt securities that are used as collateral for the investor’s obligation under the purchase contract. The holders of the mandatory convertible securities receive distributions of interest on the debt securities up to the conversion date. Typically, the issuer will remarket the debt securities prior to the conversion date at an interest rate that is reset to reflect the then current market rate. If the remarketing is successful, the proceeds will be used to make the required payments under the purchase contracts. If the remarketing is unsuccessful, the issuer will retire the debt securities in lieu of receiving the required payments under the purchase contracts.