Unsecured Loan Stock

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Unsecured Loan Stock

A loan made to a company with no collateral. In many respects, unsecured loan stock behaves like a bond (both offer fixed returns, have maturity dates, and so forth). However, unlike a bond, in the event of default or liquidation, the holder of unsecured loan stock does not have a claim on the company's assets. For that reason, unsecured loan stock carries higher risk than a bond. Despite the name, it has nothing to do with shares of stock.
References in periodicals archive ?
In FY2014, KEV made a payment of MYR 101.0 million on its redeemable unsecured loan stocks (RULS), meeting a distribution test that includes a minimum forward-looking post-distribution finance service cover ratio (FSCR) of 1.30 times (x) and a maximum finance-to-equity (FE) ratio of 80:20.
22 December 2010 - MARC today kept its B rating on DutaLand Berhad's (KUL:DUTALND) outstanding MYR26.3m (USD8.4m/EUR6.4m) Redeemable Unsecured Loan Stocks (RULS) while upgrading its rating outlook to "stable" from "negative".
MARC expects KEV to preserve additional cash to offset the lower CFO generation in FY2014 by deferring payments on its redeemable unsecured loan stocks (RULS) if necessary.
22 December 2010 - MARC today maintained its BB- rating with "negative" outlook on Olympia Industries Berhad's (KUL:OLYMPIA) outstanding MYR73m (USD23m/EUR18m) nominal value Redeemable Unsecured Loan Stocks (RULS).
The company registered losses before taxation of MYR 4.5 million which were notably lower than projected losses before taxation of MYR 656.0 million on the back of higher facilities income and other income of MYR 222.0 million and classification of the amount of coupon payable under the redeemable convertible unsecured loan stocks (RCULS) as part of equity.
5 February 2010 - Malaysian Rating Corp (MARC) cut to B from BB- the rating on the redeemable unsecured loan stocks (RULS) of local diversified holding company DutaLand Bhd (KUL:3948).
By lengthening the debt maturity profile of its senior debt, "KEV is expected to have sufficient liquidity to service the interest and scheduled principal payments on its outstanding redeemable unsecured loan stocks (RULS).
5 February 2010 - Malaysian Rating Corp (MARC) revised to "negative" from "stable" the outlook while keeping the rating at BB- on the redeemable unsecured loan stocks (RULS) of local Olympia Industries Bhd (KUL:3018).
The plan entails a refinancing and full redemption of the Senior Sukuk via a MYR 400 million Syndicated Term Loan (STL) and MYR 263 million of Redeemable Convertible Unsecured Loan Stocks. We understand that the term sheet for the STL has been finalised, with the entire exercise targeted for completion by end-February 2013.