A convertible with a premium put option which gives the bondholder the right to demand redemption of the bond at a premium to par value prior to maturity date. The strike price of the put option is at a premium to par (i.e., the bond is generally issued with a lower coupon than a vanilla convertible). This bond can be converted on only one date during its life, in which case the exercised option is no longer effective. The addition of puttability in a convertible is viewed as an extra attraction for investors, as this will help offer downside price protection. The security to which a bond can be converted is a share of stock of a company other than the bond issuer, usually one in which the issuing company holds a substantial interest.