Patent ID: 7848998

Claim:
A computer-implemented method relating to convertible hybrid securities issued by an issuer to one or more investors, wherein each hybrid security is convertible under certain conditions into a security, and wherein each hybrid security has an issue date, a scheduled maturity date, a conversion price, and a final maturity date, the method comprising: determining, by a computer system, the issuer's leverage ratio and the issuer's interest coverage ratio, wherein the computer system comprises a processor and a database, and wherein the issuer is obligated pursuant to the hybrid securities to make payments on the hybrid securities to holders thereof when the issuer's leverage ratio is less than a threshold leverage ratio and the issuer's interest coverage ratio is greater than a threshold interest coverage ratio; tracking, by the computer system, ownership of the hybrid securities because the hybrid securities comprise an enforceable covenant requiring the issuer to issue replacement securities when the hybrid securities are called by the issuer after the scheduled maturity date of the hybrid securities; and determining, by the computer system, during a contingent convertible time period of the hybrid securities whether requirements for converting the hybrid securities are satisfied based on a current price of the security in which the hybrid securities are convertible and the conversion price of the hybrid securities, wherein the contingent convertible time period ends prior to a start of a freely convertible time period for the hybrid securities, wherein the investor is allowed to convert the hybrid securities in the contingent-convertible time period if the price of the securities into which the convertible hybrid are convertible has been greater than the first specified price for a specified number of days, and wherein the freely convertible time period ends prior to start of a non-convertible time period, and wherein the non-convertible time ends at the final maturity date, and wherein the issuer is required to settle with at least one holder of the hybrid securities, upon the at least one holder converting a quantity of the hybrid securities during either the contingent convertible time period or the freely time convertible period, for (i) an amount of preferred stock up to a par value of the hybrid securities and (ii) an amount of common stock of the issuer for an amount over the par value of the hybrid securities.