The study found that existing evidence supports the use of subordinated
debt to encourage market discipline.
Unlike conventional loans, which are tied to and determined by asset values, accounts receivable and debt-to-equity ratios, a subordinated
loan is based on cash flow, earnings and management's track record.
Interest payments on the Preferred HITS must be deferred if interest on the junior subordinated
notes or dividend payments on the preferred stock are deferred.
The senior subordinated
downgrade reflects Sanmina layering $600 million of senior unsecured debt on top of the senior subordinated
debt, resulting in lower recovery prospects for the subordinated
New York City time, on October 2, 2006, $96,735,000 in aggregate principal amount of the Senior Subordinated
Notes had been properly tendered and not withdrawn as part of the private exchange offer.
today announced the sale of $350 million principal amount of Series B Enhanced Junior Subordinated
Debentures due October 1, 2066.
4% Contingent Convertible Subordinated
Notes and 2.
The Senior Subordinated
Notes will rank junior in right of payment to all of MTR's existing and future senior indebtedness (including MTR's senior secured credit facility and its 9 3/4% Senior Notes due 2010) and will rank equal in right of payment with any senior subordinated
indebtedness that MTR may incur.
Holders of Subordinated
Notes who validly tendered their Subordinated
Notes after the consent payment deadline but prior to the expiration time will receive $1,037.
GFSI will pay a consent fee of $20 per $1,000 in principal amount of Senior Subordinated
Notes tendered on or prior to 5:00 P.
NYSE:CNB) announced yesterday the pricing terms of the new series of Subordinated
Notes (the "New Notes") which are to be issued in exchange for its outstanding 9-3/8% Subordinated
Notes due 2011 and 8% Subordinated
Notes due 2009.