debentures


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Related to debentures: preference shares, bonds, Convertible Debentures

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.

debentures

a means of financing companies through fixed-interest LOANS secured against company ASSETS. In some cases the company may offer a specific asset such as a particular machine as security for the loan (fixed charge); in other cases lenders are offered security by means of a general claim against all company assets in the event of default (floating charge). Most debentures are redeemable by the borrower at a future specified date, say 10 or 15 years from the date of issue. Some debentures, however, are irredeemable and never have to be repaid, the lender continuing to be rewarded through interest payments forever. See LOAN CAPITAL, CONVERTIBLE LOAN STOCK.

debentures

a means of financing companies through fixed-interest LOANS secured against company ASSETS.

In some cases the company may offer a specific asset, such as a particular machine, as security for the loan; in other cases lenders are offered security by means of a general claim against all company assets in the event of default. See LOAN CAPITAL.

References in periodicals archive ?
The principal purposes of the offers are to (1) refinance the original series debentures with new collateralized debt securities having a lower interest rate and a shorter maturity than the original series debentures, and (2) repurchase the 1991 series debentures and 1992 series debentures, thereby reducing the company's aggregate outstanding leverage and annual interest expense.
Oakwood also announced that the transfer books for the debentures being redeemed will be closed on Dec.
In connection with the redemption of the Debentures, the Company has made arrangements with Montgomery Securities pursuant to which Montgomery Securities has agreed, subject to certain conditions, to purchase from the Company on the Redemption Date the number of shares of Common Stock which would have been issued on conversion of Debentures not surrendered for conversion plus the number of shares necessary to provide funds to pay cash in lieu of fractional shares.
The debenture is convertible into common shares with conversion prices ranging between $0.
Braaten & Pether for investment purposes and, in the future, each of them may acquire or dispose of Debentures or common shares from time to time.
If the first year of Debenture interest is paid in common shares and the Debentures are converted in the second year of the term (which is the maximum number of shares expected to be issued pursuant to the Debentures, excluding the anti-dilution provisions applicable under certain restricted circumstances previously mentioned), a total of 270,234 further common shares would be issued, in addition to the 3,825,873 common shares which may be issued pursuant to the previously announced first issue of 10% Senior Secured Convertible Debentures.
There can be no assurance regarding whether holders of the Debentures will choose to convert their Debentures into the Cash Conversion Payment or to put their Debentures to Reebok.
Icefloe will have the right to fully redeem the Debentures any time prior to maturity for a cash payment in the amount of the principal plus accrued interest and a maturity premium in the amount of $6,250 (the "Maturity Premium") for each Debenture Unit redeemed.
98-10 involves the determination of whether the surrender of target debentures in exchange for acquiring debentures is subject to nonrecognition treatment if the acquiring and target corporations are both parties to the same reorganization under Sec.
CINCINNATI, April 18 /PRNewswire/ - American Financial Corporation (AFC) announced today that its recent Offer to issue 9-3/4% Debentures due April 20, 2004, ("New Debentures") in exchange for all of its issues of presently outstanding debentures expired pursuant to its terms on Friday, April 15, 1994.
Interest on the convertible debentures will accrue at a rate of 12% per year for the first year following the closing and 18% for the second year and will be payable in cash on the first anniversary of the closing date and on the maturity date.
The transaction described in the 1981 ruling involved a sale of debentures outside the United States by a foreign subsidiary (FS).