The terms and conditions of the documentation include a change of control clause, a
negative pledge clause and a cross default provision.
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.
The debentures represent Con Ed's most senior debt, although the unsecured indenture lacks a
negative pledge clause.
DineEquity's senior unsecured notes do not have financial covenants but contain a
Negative Pledge clause that requires equal and ratable security if non-permitted secured debt is incurred and have a change of control put option at 101% of principal plus accrued and unpaid interest.
Before financing can actually be made available, the World Bank must issue a waiver of its
negative pledge clause which will allow Russia to set up the escrow accounts called for in the agreement.
The proposed notes also have the benefit of a
negative pledge clause.
The terms and conditions of the notes also contain a cross default clause and a
negative pledge clause, the latter of which allows for a degree of securitisation by ATF.
The amendments to the indentures will conform the
negative pledge clause to the
negative pledge clause in CIT's most recent indenture.
CIT is soliciting consents to conform the
negative pledge clause in the indentures for these Debt Securities to the
negative pledge clause in CIT's current indenture.
The use of exit consents worked well in Ecuador in 2000, where exiting bondholders agreed to remove cross-default and
negative pledge clauses.
However, a loan with an assignment of export proceeds could have achieved the same purpose and, in the case of the UBS/BPOI facility, the main reason for electing the pre-payment structure was actually to circumvent
negative pledge clauses present in other Angolan transactions which prevented Sonangol from assigning its right to receivables from oil contracts.
Buyers look to those issuers that have limitations on debt incurrence or restricted payments, tests, and strong
negative pledge clauses not typically found in investment grade deals.
