Legal defeasance

Legal defeasance

The deposit of cash and permitted securities, as specified in the bond indenture, into an irrevocable trust sufficient to enable the issuer to fully discharge its obligations under the bond indenture.

Legal Defeasance

1. A provision in a loan or bond removing it as a liability on a balance sheet if cash or a portfolio is set aside for debt service. Usually defeasance occurs when a borrower owns a portfolio of Treasury securities, the coupons of which are used to service a debt. When the borrower has set aside sufficient assets to cover the debt, the debt does not need to be recorded on a balance sheet.

2. More broadly, a provision in an agreement voiding the agreement under certain, defined circumstances.
References in periodicals archive ?
The proposed amendments to the indentures governing the Notes would eliminate substantially all of the restrictive covenants, certain affirmative covenants, certain events of default, certain conditions to legal defeasance or covenant defeasance and substantially all of the restrictions on the ability of MFI or Holdings, as applicable, to merge, consolidate or sell all or substantially all of their properties or assets contained in each Indenture and the related Notes, and would waive any and all defaults resulting from the consummation of the merger or the financing as described in the Offer to Purchase.
This press release contains "forward-looking statements," including statements regarding the payment of total consideration and tender offer consideration, the elimination of restrictive covenants, certain affirmative covenants and certain conditions to legal defeasance or covenant defeasance contained in the indenture governing the Notes and the redemption of any untendered Notes, and are generally identified with words such as "believe," "expect," "intend," "plan," "could," "may" and similar expressions.
MFI and Holdings, as applicable, and the respective trustees under the indentures governing their respective Notes are expected to enter into a supplemental indenture that will, once operative, eliminate substantially all of the restrictive covenants, certain affirmative covenants, certain events of default, certain conditions to legal defeasance or covenant defeasance and substantially all of the restrictions on the ability of MFI or Holdings, as applicable, to merge, consolidate or sell all or substantially all of their properties or assets contained in the Indenture and the related Notes, and would waive any and all defaults resulting from the consummation of the merger or the financing described in the Offer to Purchase.
Forward-looking statements include, among others, statements regarding the payment of the Total Consideration and Tender Offer Consideration, the elimination of restrictive covenants, certain affirmative covenants and certain conditions to legal defeasance or covenant defeasance contained in the indenture governing the Notes and the redemption of any untendered Notes, and are generally identified with words such as "believe," "could," "expect," "intend," "may," "plan," "will" and similar expressions.
as Trustee under the respective Indentures for the Notes, to effect a legal defeasance of the Notes.
The supplemental indenture eliminated substantially all of the restrictive covenants, certain affirmative covenants, certain events of default, certain conditions to legal defeasance or covenant defeasance and substantially all of the restrictions on the ability of Cricket or Leap to merge, consolidate or sell all or substantially all of their properties or assets contained in the indenture governing the Notes.
If the proposed amendments to the indenture governing the Notes become effective and operative, they will eliminate from the indenture substantially all of the restrictive covenants, certain affirmative covenants, certain events of default, certain conditions to legal defeasance or covenant defeasance, and all of the restrictions on the ability of Rain CII, its affiliate Rain CII Carbon (India) Limited (formerly known as Rain Industries Limited, as successor to Rain Calcining Limited), an Indian corporation ("RCCIL "), and their subsidiaries, as applicable, to consummate, and will waive any and all defaults resulting from the consummation of, the private placement of debt referenced above to fund the tender offer and consent solicitation.
The proposed amendment to the indenture governing the Notes would eliminate substantially all of the restrictive covenants, certain affirmative covenants, certain events of default, certain conditions to legal defeasance or covenant defeasance and substantially all of the restrictions on the ability of the Company to merge, consolidate or sell all or substantially all of its properties or assets contained in the indenture and the Notes.
If the proposed amendments become effective and operative, they will eliminate from the indenture substantially all of the restrictive covenants, certain affirmative covenants, certain events of default, certain conditions to legal defeasance or covenant defeasance, and all of the restrictions on the ability of Rain CII, its affiliate Rain CII Carbon (India) Limited (formerly known as Rain Industries Limited, as successor to Rain Calcining Limited), an Indian corporation ("RCCIL "), and their subsidiaries, as applicable, to consummate, and will waive any and all defaults resulting from the consummation of, the planned simultaneous private placement of debt by Rain CII to fund the tender offer and consent solicitation, in each case as described in further detail in the Offer to Purchase.
The supplemental indenture eliminates substantially all of the restrictive covenants, certain affirmative covenants, certain events of default, certain conditions to legal defeasance or covenant defeasance and substantially all of the restrictions on the ability of the Company to merge, consolidate or sell all or substantially all of its properties or assets contained in the indenture and the Notes.
The proposed amendments eliminate from the Indenture substantially all of the restrictive covenants, certain affirmative covenants, certain events of default and certain conditions to legal defeasance or covenant defeasance.
The supplemental indenture eliminated substantially all of the restrictive covenants, certain affirmative covenants, certain events of default and certain conditions to legal defeasance or covenant defeasance contained in the indenture governing the Notes.