Debenture


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Debenture

Any debt obligation backed strictly by the borrower's integrity, e.g. an unsecured bond. A debenture is documented in an indenture.

Debenture

A debt security, issued by a government or large company, that is not secured by an asset or lien, but rather by the all issuer's assets not otherwise secured. That is, a debenture carries no collateral and is considered unsecured; in case of bankruptcy, the debenture holder is considered a general creditor. A debenture can be traded, and the term is often interchangeable with a bond. Debentures issued by governments are considered risk-free. See also: Treasury security.

debenture

A corporate bond that is not secured by specific property. In the event that the issuer is liquidated, the holder of a debenture becomes a general creditor and therefore is less likely than the secured creditors to recover in full. Because of their high risk factor, debentures pay higher rates of interest than secured debt of the same issuer. See also subordinated debenture.

Debenture.

A debenture is an unsecured bond. Most bonds issued by corporations are debentures, which are backed by their reputation rather than by any collateral, such as the company's buildings or its inventory.

Although debentures sound riskier than secured bonds, they aren't when they're issued by well-established companies with good credit ratings.

debenture

An unsecured note or bond.

References in periodicals archive ?
Superior will use funds from its credit facility to fund the redemption of the 2012 Debentures.
"We will be sending a detailed response to Russell Jenkins to this effect, which explains the position with regards to debenture holder access to non-WRU events, but we also remain grateful for his communication which will help us to focus attention on this important issue."
But bank debentures have lost their significance since banks were generally allowed in 1999 to issue straight bonds as non-bank companies do.
69-142, the Service determined that the parties had undertaken a valid B reorganization, but that the exchange of the debentures was a separate, taxable exchange.
The Company also announced that, following on the successful solicitation of consents, it is considering an offering of Debentures under its base shelf prospectus.
"A total of 84 debentures of approximately 90 million denars are currently active, while debentures of nearly 70 million denars have been erased.
There are also full details on the 125th Anniversary Debenture Issue on the WRU website www.wru.co.uk
The Minnesota Supreme Court ruled that the buyer of $15 million of subordinated debentures from a now insolvent savings and loan may maintain an action against the S&L's auditors distinct from other creditors' actions.
Presumably, Parent transferred the right to obtain its stock before the debenture sale.
Purchasers of Debentures received a capital discount of 2.5% on the financing (meaning that for every $1.00 Debenture acquired, purchasers of Debentures paid $0.975 to the Company).
Just Energy Group announced that it has entered into an agreement with a syndicate of underwriters, pursuant to which Just Energy has agreed to issue, on a "bought deal" basis, CAD$100,000,000 aggregate principal amount of convertible unsecured senior subordinated debentures at a price of CAD$1,000 per Debenture.