Bond covenant

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Bond covenant

A contractual provision in a bond indenture. A positive covenant requires certain actions, and a negative covenant limits certain actions.

Bond Covenant

An agreement between the issuer and holder of a bond, requiring or forbidding certain actions of the issuer. Positive covenants require actions while negative covenants forbid them. The exact terms of a bond covenant must be written in the bond indenture.
References in periodicals archive ?
Analysis of the current projected revenues versus anticipated operating and capital expense needs, reserve levels and any bond covenants.
With this financing structure now finalized, Concordia confirms that as expected it will be in compliance with its existing bond covenants, including covenants relating to senior secured debt/EBITDA and fixed charge coverage ratios.
Loan or bond covenants often require borrowers to agree to maintain a minimum level of equity capital or cash on hand.
Evidence on the effect of bond covenants and management compensation contracts on the choice of accounting techniques; the case of the depreciation switch-back.
commitment, whilst ensuring compliance with bond covenants, is an important
Hospitals try to make the bond covenants achievable because if they fail "it endangers the whole financing," Rock said.
Hammerson, the country's fourth-largest property company, will raise pounds 580m and warned that without extra funding it was likely to breach the terms of its bank and bond covenants.
In exchange for relief from this requirement, Delta will increase its daily flight commitments from 187 (from the original agreement) to 400; will shorten the bond repayment period from 2022 to 2016; and will go beyond the original bond covenants and specific job functions that will stay in Minnesota as part of the commitment for 10,000 jobs.
It is shown that these moral hazard problems can be mitigated by incorporating appropriate insurance requirements into bond covenants.
Also, all debt obligations must be reviewed carefully to ensure that there will not be any conflicts with bond covenants.
Spurned equity investors are likely to examine bond covenants more now than at any other time in recent decades.
A greater level of detail is usually dictated by legal or contractual provisions, that is, state law, bond covenants or grant or contribution agreements.