contingent takedown option

contingent takedown option

An option to buy a new issue, fixed-income security at a predetermined price until a specific date. The price is usually at par. Contingent takedown options typically originate as sweeteners in new debt issues to lower the interest cost to the issuers.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.