bond indenture


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Related to bond indenture: Serial bonds, sinking fund bond

Bond indenture

Contract that sets forth the promises of a bond issuer and the rights of investors.

Indenture

A contract for a bond. An indenture sets the terms of the bond; for example, it includes the coupon rate, the period until maturity, and whether the bond comes with any special features like convertibility or whether it is callable. All bonds must have an indenture. Indentures are usually summarized in a bond's prospectus.

bond indenture

See indenture.
References in periodicals archive ?
With an explicit restriction on the sale and lease-back arrangement, there is no possibility of an increase in agency costs arising from a conflict of interest between the existing unsecured debt holders and new lessors; however, reduction of agency costs of debt via contracting cost reduction and higher market value of secured debt is not feasible due to the restriction being placed in the bond indenture. Thus, agency costs of debt increase (i.e., the bond rating falls) as the sale and lease-back arrangement is explicitly restricted in bond indenture and firms with low agency costs of debt are positioned to raise debt capital relatively free of explicit restriction placed in bond indenture.
Since monitoring, amending and enforcing covenants is difficult, the bond indenture will contain few covenants; and those that appear entail little monitoring, are rarely breached, and, if breached, can be properly enforced without intimate knowledge of the issuer.
Overall, the stock price responses indicate that the issuance of bonds with ERCs in a bond indenture has, when compared to the issuance of nonprotected bonds, a more positive impact on stockholder returns.
The corporation delivers the repurchased securities to the trustee thus satisfying the bond indenture agreement.
Cox, "Valuing Corporate Securities: Some Effects of Bond Indenture Provisions," Journal of Finance (May 1976), pp.
* Many corporate bond indentures contain sinking fund provisions.
Bond price reactions to MBO announcements potentially depend upon factors specific to the bond indenture. In this section, we investigate the possibility that bond covenant provisions lead to differential price effects across individual bond issues.
The Fall Creek bond indenture requires a cash-funded DSRF funded at the maximum annual debt service (MADS).
The prior bond indenture was closed with the creation of the 2010 MFI.
If a public bond indenture or other issuer obligation include a cross default and acceleration provision then breach of specific direct debt covenants could trigger greater financial distress from cascading liquidity and refinancing risks.
The utility's annual transfer to the city's general fund is made, pursuant to the revenue bond indenture, after funding all other operating expenditures and satisfying annual debt service obligations.
Airport costs will be recovered primarily through the landing fees and terminal rents at a sufficient level to meet all bond indenture requirements.