Debenture


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Related to Debenture: Convertible debenture, secured debenture

Debenture

Any debt obligation backed strictly by the borrower's integrity, e.g. an unsecured bond. A debenture is documented in an indenture.

Debenture

A debt security, issued by a government or large company, that is not secured by an asset or lien, but rather by the all issuer's assets not otherwise secured. That is, a debenture carries no collateral and is considered unsecured; in case of bankruptcy, the debenture holder is considered a general creditor. A debenture can be traded, and the term is often interchangeable with a bond. Debentures issued by governments are considered risk-free. See also: Treasury security.

debenture

A corporate bond that is not secured by specific property. In the event that the issuer is liquidated, the holder of a debenture becomes a general creditor and therefore is less likely than the secured creditors to recover in full. Because of their high risk factor, debentures pay higher rates of interest than secured debt of the same issuer. See also subordinated debenture.

Debenture.

A debenture is an unsecured bond. Most bonds issued by corporations are debentures, which are backed by their reputation rather than by any collateral, such as the company's buildings or its inventory.

Although debentures sound riskier than secured bonds, they aren't when they're issued by well-established companies with good credit ratings.

debenture

An unsecured note or bond.

References in periodicals archive ?
98-10) that, although some of the Y shareholders also own Y debentures, a substantial portion of the Y debentures were owned by persons who own no Y stock.
by tendering debentures, the holders may eliminate the risk of adverse developments reducing the value of the debentures below 17.
Regent Securities Capital Corporation and Shoreline Pacific, LLC served as the placement agents for the issuance and sale of the convertible debentures and related warrants.
The purpose of the tender offer is to satisfy the Company's obligation under an indenture to offer to repurchase the Debentures after a change in control.
All regular semi-annual interest payments due in March and April 1994 will be paid on the old issues of debentures presently outstanding, including those tendered and accepted for exchange.
In addition, the Company continues to solicit consents to proposed amendments that would eliminate or modify various covenants in the Indenture governing the Debentures and to the waiver of any defaults or events of defaults under the Debentures and the Indenture, including by reason of the Company's failure to purchase $15 million principal amount of Debentures under the terms of an existing covenant.
The debentures are redeemable to the extent NSHFV redeems the dual currency notes.
19, 1993 to convert its debentures into Class A Common Stock at a conversion price of $18.
The debt to be redeemed will consist of all of its 8 7/8 percent Sinking Fund Debentures Due 1995, 8 percent Sinking Fund Debentures Due 1998 and 12 percent Debentures Due 2015.
The net share settlement feature would allow PMI to satisfy its obligation due upon conversion to holders of the new debentures in cash for a portion of the conversion obligation, reducing the share dilution associated with the conversion of the new debentures.