Legal Definitions - price amendment

A price amendment is a change made to a registration statement, prospectus, or prospectus supplement that affects the offering price of securities. This change can include alterations to underwriting and selling discounts or commissions, the amount of proceeds, conversion rates, call prices, or other factors related to the offering price.

Example 1: A company is preparing to issue shares of stock to the public. The initial prospectus lists the offering price at $20 per share. However, after conducting market research, the company decides to increase the offering price to $25 per share. This change would require a price amendment to the prospectus.

Example 2: A bond issuer initially sets the conversion rate for its convertible bonds at 50 shares of common stock per $1,000 bond. However, after receiving feedback from investors, the issuer decides to increase the conversion rate to 60 shares per $1,000 bond. This change would require a price amendment to the bond's prospectus.

These examples illustrate how a price amendment can impact the offering price of securities and the related terms and conditions. In both cases, the issuer made changes to the initial offering price or conversion rate, which required an amendment to the prospectus or registration statement.