Conditional Call Option

Conditional Call Option

A term in some callable bonds requiring the issuer to replace it with a non-callable bond with the same maturity and similar terms if the bond is called prematurely. This protects the bondholders in the event that the bond is called. This provision is exclusive to junk bonds.
References in periodicals archive ?
The company has been granted a 3-year conditional call option which gives the right, but not the obligation, for it to acquire 100% of Ardan Logistics Kenya Ltd, a separate and new shell company from which the restructured business of Ardan will be run.

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