negative pledge clause

Negative pledge clause

A bond covenant that requires the borrower to grant lenders a lien equivalent to any liens that may be granted in the future to any other currently unsecured lenders.

Negative Pledge

A negative covenant in a bond indenture in which the issuer agrees not to use any of its assets as security for another debt obligation or other liability if doing so would adversely impact the riskiness of the bond. This protects bondholders and also allows the issuer to pay a lower coupon rate.

negative pledge clause

A restriction in a borrowing agreement that limits a borrower's ability to issue new debt having a priority claim on the firm's assets. A negative pledge clause, a part of some debenture agreements, protects the creditors against a dilution of security.
References in periodicals archive ?
of covenants, including a negative pledge clause, limits on mergers,
Moody's assigns provisional (P)B3 rating to Tatfondbank's foreign-currency senior unsecured debt
The terms and conditions of the documentation include a change of control clause, a negative pledge clause and a cross default provision.
Major Fitch rating boost for Batelco
New Approaches to Economic Development: The World Bank, the EBRD, and the Negative Pledge Clause, 35 Harv.
Generalidades del regimen del credito sindicado: mencion especial al derecho ingles
Although the loan does not contain a negative pledge clause, the loan seniority is viewed the same as that on Mitsubishi's issued senior unsecured bonds.
-S&P rates Mitsubishi's JPY30bn syndicated loan at A+
The terms and conditions of the bond's documentation, which are applicable under English law, include a negative pledge clause and a cross default and cross acceleration provision.
Fitch ratings boost for $750m Mumtalakat notes
The loan agreement contains a negative pledge clause and certain other
Moody's assigns Baa1 rating to AHML's local-currency senior unsecured debt
The bonds feature a negative pledge clause and a change of control put option.
-Fitch gives expected BB+ rating to PKN Orlen's eurobonds
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