medium · Debt Capital Markets credit-ratings-risk
A portability provision has a 'sunset' clause. If the bonds were issued on 2024-06-10 with a 24-month portability window, what happens to a Change of Control occurring on 2026-07-01?
- The Change of Control Put repurchase price steps up to 103%
- Portability stays available if pro forma leverage holds under 3.0x
- The issuer must first secure a one-notch rating upgrade to keep the feature
- Portability is no longer available regardless of the leverage ratio.
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