straight debt

Straight Debt

Any debt that cannot be changed into something else. For example, a regular bond is straight debt because it contains no special features beyond repayment with interest. Straight debt contrasts with convertible debt which may be exchanged for something else, usually common stock.

straight debt

Debt that cannot be exchanged for another asset. Because most bonds are not convertible, they are examples of straight debt. See also convertible security.
References in periodicals archive ?
In July, we completed a straight debt financing of $17 million ([euro]15.
French Finance Minister Michel Sapin said after meeting Varoufakis that Athens could not expect a straight debt write-off, but left the door open to other options that include giving Athens more time for repayment.
Before the meeting Sapin repeated that Greece could not expect its partners to accept a straight debt write off.
Our data set comprises convertible debt, straight debt, and seasoned equity offerings made by US corporations from 1992 to 2007.
2) CBs could be more expensive than either pure equity or straight debt financing, given the firm's ex ante prospects.
Calibrating the model to recent data for large banks, replacing straight debt with CoCos makes bankruptcy less likely and substantially reduces the debt-overhang costs (though, to be honest, in most cases it means increasing the debt-overhang benefits).
For additional assurance that the obligation will not jeopardize the corporation's S status, the planner can structure the obligation to meet the straight debt safe harbor described below.
We expect that about half of the permanent financing will consist of convertible notes with the balance of the purchase price composed of straight debt.
When instead legal protection against fraud is poor, straight debt with foreclosure is the only feasible contract, even if it induces over-liquidation.
At the same time, the medium quality firm will not issue straight debt, to avoid financial distress costs.
In addition, it led in technology straight debt volume with 10 deals for $6.
An obligation to pay constitutes straight debt if it is an unconditional promise to pay a sum certain in money and the interest rate and payment dates are not contingent on profits, borrower's discretion or similar factors.