A provision in a loan agreement or bond indenture allowing one party or the other to take a certain action if the borrower's credit rating changes for any reason. For example, if a bond issuer's credit rating falls, a rating trigger may release bondholders from certain obligations specified in the indenture.
“Recovery Notes” means the notes issued by the Bank. The Recovery Notes will be paid out of the Collection Account, which is funded by cash generated by the Asset Pool. The Recovery Notes are limited recourse obligations of the Bank, and the level of collateral of theRecovery Notes will correspond to the amount of Recoveries.
A provision which gives to the holders to terminate the agreement in the event of any changes in law of the country where the issuer is incorporated which will affects the debt.
A provision which gives to the party to an agreement the right to terminate the agreement in the event of any changes in tax law that will affects the debt.
Refinance means borrower paying off the existing loan by signing a new loan agreement with the same Lender.
Reorganisation is process which allow a Structural changes in the company to prevent bankruptcy and reduce business risk.
A clause in a contract that requires one party to do, or refrain from doing, certain things. Often, a restriction on a borrower imposed by a lender.
A provision that voids a bond when the borrower sets aside cash or bonds sufficient enough to service the borrower's debt.
A bond that can be converted to cash, debt or equity at the discretion of the issuer at a set date. The bond contains an embedded derivative that allows the issuer to put the bond to bondholders at a set date prior to the bond's maturity for existing debt or shares of an underlying company.
A reverse merger means private company acquires public company. The transaction typically requires reorganization of capitalization of the acquiring company.