easy · Debt Capital Markets bond-instruments-structures
A 'make-whole' call differs from a standard 'fixed-price' call because the redemption price of a make-whole call is:
- Lower than the prevailing secondary-market trading price of the bond at redemption.
- Always fixed at par value, set precisely at 100% of principal.
- Triggered only upon a change of control or merger affecting the issuer entity.
- Calculated as the present value of remaining cash flows plus a spread.
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