Negative Pledge Clause

Also found in: Wikipedia

0.01 sec.

Negative pledge clause

A bond covenant that requires the borrower to grant lenders a lien equivalent to any liens that may be granted in the future to any other currently unsecured lenders.

Negative Pledge

A negative covenant in a bond indenture in which the issuer agrees not to use any of its assets as security for another debt obligation or other liability if doing so would adversely impact the riskiness of the bond. This protects bondholders and also allows the issuer to pay a lower coupon rate.

negative pledge clause

A restriction in a borrowing agreement that limits a borrower's ability to issue new debt having a priority claim on the firm's assets. A negative pledge clause, a part of some debenture agreements, protects the creditors against a dilution of security.

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

?Page tools

Printer friendly
Cite / link

Feedback
Add definition

Mentioned in	?		References in periodicals archive	?		Financial browser	?		Full browser	?
Clausula de compromiso negativo			A negative pledge clause prohibits the issuance of new debt having priority over existing debt in case of bankruptcy. What the accountant must know about fixed income (debt) securities by Siegel, Joel G.; Levine, Marc H.; Fitzsimons, Adrian P. / The National Public Accountant However, a loan with an assignment of export proceeds could have achieved the same purpose and, in the case of the UBS/BPOI facility, the main reason for electing the pre-payment structure was actually to circumvent negative pledge clauses present in other Angolan transactions which prevented Sonangol from assigning its right to receivables from oil contracts. How to raise mid-term foreign currency finance by De Giorgio, Emmanuelle Moors / African Business The proposed notes also have the benefit of a negative pledge clause. Fitch Rates Kraft's EUR2.85B Senior Unsecured Notes 'BBB'; Outlook ... by Business Wire			Neckline NECTAs Negative Acknowledgment negative amortization Negative Amortization Cap Negative Amortizing Mortgage Negative Authorization Negative Balance Negative Carry negative cash flow Negative Convexity Negative Covenant Negative Duration negative easement Negative Equity negative equity loans Negative Goodwill Negative Income Tax Negative Interest Rate negative leverage Negative Net Worth Negative NPV tie-in project Negative Obligation negative or positive leverage Negative Pledge Negative Pledge Clause Negative Points Negative Volume Index Negative working capital Negative Yield Curve Neglected Firm Effect Neglected-Firm Effect negligence negligent fraud Negligent Trustee negligent waste Negociable Negociacao coletiva Negociacion colectiva Negociacion ficticia Negociacion fuera de la bolsa Negociacion suspendida Negociaciones en base a informacion confidencial Negociar si llega al precio Negociation collective Negotiable Negotiable bill of lading Negotiable Certificate of Deposit Negotiable Certificates of Deposit negotiable instrument Negotiable Order of Withdrawal			Negative obligation Negative Obligations negative or positive leverage Negative Overhead Growth Negative part Negative Partial Transpose negative pathognomonic symptom Negative Peak Latency Difference Scores negative pedal Negative Perspective Collage Negative pH Negative pH Negative pH Negative pH Negative pH negative phase negative phase of the shock wave negative phase sequence negative photo plane negative photokinesis negative phototaxis negative pi meson pion negative pi meson radiotherapy negative picture phase negative pion negative plate Negative Play Experience Negative pledge Negative Pledge Clause Negative Pledge Clauses Negative Pledges Negative pleiotropy Negative pleiotropy Negative pleiotropy Negative Pointer Justification Count Negative Points Negative Polarity Negative Polarity Negative polarity item negative pole negative pole negative poles negative poles Negative politeness Negative politeness Negative Population Growth Negative Positive Zero Negative potential Negative potential Negative Power Supply Rejection Negative predictive value Negative predictive value Negative pregnant Negative pregnant negative prescription negative pressure negative pressure negative pressure negative pressure

Financial Dictionary

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

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.