easy · Corporate Credit Analysis
What does it mean for two different bond issues to rank 'pari passu' with each other?
- They are both secured by the same physical collateral but have different maturities.
- They have the same legal priority and will receive the same pro-rata recovery.
- One bond can be converted into the other at the option of the bondholders.
- The issuer must pay interest on both bonds on the exact same day of the month.
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