Convertible debt can be thought of as straight debt with nondetachable warrants.
Thus, at first blush, it might appear that debt with warrants and convertible debt are more or less interchangeable. However, a closer look reveals one major and
several minor differences between these two securities.15 First, as we discussed previously,
the exercise of warrants brings in new equity capital, whereas the conversion of
convertibles results only in an accounting transfer