restrictive covenant

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Related to Negative Covenants: Affirmative Covenants

Restrictive Covenant

A bond covenant that forbids the issuer from taking certain actions. For example, a restrictive covenant may prevent an issuer from issuing more debt until the bond matures. More commonly, a restrictive covenant limits the dividends an issuer may pay to shareholders so as to reduce the risk to the bond. It contrasts with a positive covenant, which requires the issuer to take certain enumerated actions. It is also called a negative covenant.

restrictive covenant

See covenant.

restrictive covenant

A deed restriction. See covenant.
References in periodicals archive ?
The Notes require mandatory redemption payments beginning on June 1, 2014 and contain customary affirmative and negative covenants of the Company.
The Term Loan negative covenants were amended to substantially mirror the covenants contained in Holding's 5 3/8% Senior Notes due 2022.
The covenants have been amended to provide for less restrictive financial and negative covenants, as well as allowing for stock repurchases.
The Notes will mature on December 8, 2013 and contain customary affirmative and negative covenants of the Company.
The commercial paper backup revolver includes standard negative covenants, including a financial maintenance covenant requiring debt-to-EBITDA maintained below 3.
Sinclair also amended certain terms of the bank credit facility, including increased incremental loan capacity, increased television station acquisition capacity and increased flexibility under the negative covenants.
The credit facility is secured by Santarus' assets, excluding intellectual property, and contains affirmative and negative covenants, including certain financial covenants.