Put provision

Put provision

Gives the holder of a floating-rate bond the right to redeem the note at par on the coupon payment date.

Put Provision

A provision in some floating-rate bonds allowing a bondholder to redeem the bond at par on the date coupons are paid. This allows the bondholder to reinvest at a more favorable interest rate when the coupon rate changes on the floating-rate bond.
References in periodicals archive ?
As consideration for the Settlement, Defendants have agreed to eliminate the Proxy Put provision in the Company's 2012 Loan Agreement.
Nowadays if you want to put provision in place for long-term care should it be needed in the future, you also need to think carefully about how that care will be funded.
The report said that 59 per cent of people who had put provision in place for funeral costs cited savings or investments as the source.
In summary, the noteholder put provision will allow investors to put notes back
BT has already put provision of broadband access to homes at the heart of BT's new focus, and has more than halved the wholesale price for fast Internet connections.
In the meantime, since the Board commenced its evaluation, it has adopted a poison pill, entered into a credit facility containing a poison put provision, provided for exorbitant compensation to executives in the event they are terminated following a change in control and delayed the annual meeting of stockholders.
Improving corporate governance, including redeeming the rights issued under the poison pill plan as well as cancelling the plan and removing the poison put provision from the credit agreement.
The plan encompassed several phases, the first being the replacement of convertible debentures, which addressed a put provision that would have been exercisable in September 2010.
2 million, is expected to close no later than July 30, 2010, with proceeds used either to repay any portion of YRCW's 5% contingent convertible senior notes that may be put back to the company later this year, or, if the company is successful in removing the put provision from the indenture covering the 5% contingent convertible notes, proceeds from the second tranche of convertible notes will be used for general corporate purposes.
Features supporting the equity categorization of these debentures include their junior subordinate priority, the option to defer interest payments on a cumulative basis for up to 10 years on each occasion, a 60-year maturity without an investor put provision and a replacement capital covenant.
Fitch views the credit risk to the portfolio as being mitigated by the small size of the holding and the availability of a put provision with a seven-day notice.
Key features supporting the equity credit class of the notes include the junior subordinated ranking, 5-year deferral period, and a long maturity with no put provision.