What does an adjustment of the conversion price (refixing) mean for bond investors?

Refixing is a term under which the conversion price is lowered when the share price falls, allowing convertible bond investors to receive more shares for the same bond.

On the other hand, because it can increase dilution for existing shareholders, lowering it below 70% of the initial conversion price is in principle prohibited (with exceptions where provided for in the articles of incorporation, etc.). The Financial Supervisory Service has investigated cases in which such terms in privately placed convertible bonds were abused for unfair trading, so check the issuance terms and disclosures carefully.