Material Adverse Change or Effect

(redirected from Material Adverse Change Clauses)

Material Adverse Change or Effect

Many mergers and acquisitions contracts include a material adverse change clause that allows a company to renegotiate or walk away from a deal if the other company or its subsidiaries announces a significant event that may negatively affect its stock price or operations. See also materiality.

Material Adverse Change or Effect

A clause in some merger and acquisition contracts allowing the acquiring to cancel a deal before it is finalized if material information is revealed that negatively impacts the target company's stock price. See also: Due diligence.
References in periodicals archive ?
Material Adverse Change clauses give the buyer the right to terminate the agreement if a specific event defined in the agreement with negative impact on the target business occurs before closing.
We will commit, close and rate lock transactions, and there are no material adverse change clauses in loan applications and commitments.
But it also said Marconi had not received any correspondence from banks suggesting it had triggered material adverse change clauses that could threaten its vital credit facilities.
The credit agreements contain no material adverse change clauses, and substantial cushion exists with respect to the 35% debt-to-capital ratio and $6.
As a barometer of market uncertainty and volatility, the survey also looked at trends in material adverse change clauses (MACs) as a follow-up to Nixon Peabody's 6th annual MAC survey released last fall.
1 billion, further supported by USD600 million of undrawn stand-by credit lines due in 2013 and 2016, without material adverse change clauses, while short-term debt reached BRL1.
Although all of Aames' warehouse lines are committed, the loan agreements maintain material adverse change clauses.
The committed facility contains a material adverse change clause.
Usiminas also benefits from a US$300 million committed liquidity facility available until July 2010 without material adverse change clauses for drawdowns.
The credit agreements have no material adverse change clauses and contain cross default clauses such that the lines would no longer be committed if another lender of an obligation of more than US$50 million decides to accelerate its loan to CVRD in an event of default.
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