straight debt

Straight Debt

Any debt that cannot be changed into something else. For example, a regular bond is straight debt because it contains no special features beyond repayment with interest. Straight debt contrasts with convertible debt which may be exchanged for something else, usually common stock.

straight debt

Debt that cannot be exchanged for another asset. Because most bonds are not convertible, they are examples of straight debt. See also convertible security.
References in periodicals archive ?
The debt issue dummy equals one if the security offer is straight debt and zero otherwise.
SCRA Sections 201 and 202 would expand the definition of safe harbor straight debt to allow convertible debt.
The regulations also address nonconforming distributions with respect to stock, the straight debt safe-harbor rules of Section 1361(c)(5) pertaining to S corporation debt issuance and the retroactive effective date included in most of the proposed regulation's provisions.
Hybrid instruments are generally distinguished from straight debt instruments by provisions that cause them to absorb losses in a going concern (i.
A unique characteristic of convertible bonds is that, in contrast to straight debt or equity, their value is relatively insensitive to changes in the risk of firm assets.
3x in 2006 and straight debt to operating EBITDA was 1.
We explore this conjecture empirically by examining and comparing the long-run operating performance of issuers of straight debt and issuers of seasoned equity.
An obligation that originally qualifies as straight debt would cease to qualify if the obligation were materially modified so that it no longer satisfied the definition of straight debt, or it was transferred to a third party who is not an eligible shareholder.
Hence, a firm that should issue equity is not going to issue straight debt because the probability of getting caught is fairly certain, and the expected costs of mimicking would exceed the benefits.
Billingsley, Lamy, Marr, and Thompson (1985) confirm empirically an average interest cost savings of approximately 50 basis points to convertible issuers over the cost of otherwise comparable straight debt.
Within its outlook for 2018, the whitepaper indicated that convertible bond issuances were overdue an uptick, but that until rates rise further the straight debt market will continue to dominate.
Within its outlook for 2018, the white paper indicated that convertible bond issuance was overdue an uptick, but that until rates rise further the straight debt market will continue to dominate.