Limitation On Sale-and-Leaseback

0.01 sec.

Limitation on sale-and-leaseback

A bond covenant that restricts in some way a firm's ability to enter into sale-and-leaseback transactions, financing techniques that could affect creditor thinness.

A provision in some bond indentures prohibiting or curtailing the issuer's ability to enter sale-and-leaseback agreements. A sale-and-leaseback agreement is an arrangement whereby a company sells a fixed asset to a bank or other institution and then rents it back and maintains usufruct of the asset. This increases the debt-to-asset ratio, which is usually seen as negative. It may be used when a company cannot otherwise obtain financing; in either case it can increase the risk to the bond, and so some bond indentures limit the use of sale and leasebacks.

Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content.

?Page tools

Printer friendly
Cite / link

Feedback
Add definition

Mentioned in	?		Financial browser	?		Full browser	?
No references found			like-kind exchange Like-Kind Property Likuta Lima Stock Exchange Limbo Limit Limit Cycles Limit Down Limit if Touched Limit Move Limit on Close Limit on Close Order Limit Order Limit Order Book Limit Order Display Rule Limit Order Information System Limit Price Limit Up Limit up, limit down Limit-On-Open Order Limitacion voluntaria de las exportaciones Limitation on Asset Dispositions Limitation on Conversion Limitation on Liens Limitation on Merger, Consolidation, or Sale Limitation On Sale-and-Leaseback Limitation on subsidiary borrowing Limitation volontaire des exportations limitations of actions Limite de deuda Limite de ejercicios Limite de fluctuacion Limite de fluctuacion diaria Limite di oscillazione limited appraisal Limited Audit limited capacity limited common elements Limited Company Limited Discretion limited equity condominium Limited flexibility exchange rate system Limited Liability limited liability company Limited Partner limited partners limited partnership Limited Payment Policy limited power of appointment limited power of attorney Limited Price Order			limitary limitary limitary Limitate limitation limitation limitation limitation limitation Limitation clause Limitation Contractuelle d'Indemnité Limitation of actions Limitation of actions Limitation of actions Limitation of actions Limitation of actions Limitation of Benefit Limitation Of Government Obligation Limitation of Motion Limitation of Motion Limitation of Relative Statistical Weights Limitation on Asset Disposition Limitation on asset dispositions Limitation on conversion Limitation on Lien Limitation on liens Limitation on Merger Consolidation or Sale Limitation on Merger, Consolidation or Sale Limitation on merger, consolidation, or sale Limitation On Sale and Leaseback Limitation On Sale-and-Leaseback Limitation on subsidiary borrowing limitation period limitation period limitation period limitation period limitation periods limitation periods limitation periods limitation periods Limitation to Scope of Testing Limitation volontaire des exportations limitations limitations limitations limitations Limitations and Exclusions Limitations of Actions Limitations of Actions Limitations on Asset Disposition Limitations on Asset Dispositions Limitations on Conversion Limitations on Heart Balm Actions Limitations on Lien Limitations on Liens Limitations on Merger Consolidation or Sale Limitations on Merger, Consolidation or Sale Limitations on Merger, Consolidation, or Sale Limitations on Recovery of Damages Limitations on Recovery of Damages Limitations on Recovery of Damages

Financial Dictionary

Free Tools:	For surfers: Free toolbar & extensions \| Word of the Day \| Help For webmasters: Free content \| Linking \| Lookup box \| Double-click lookup

Disclaimer
All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional.