medium · Debt Capital Markets credit-ratings-risk
A borrower 'Asset Swaps' a warehouse in Chicago for a distribution center in Dallas of equal value.
Does this typically trigger a mandatory Asset Sale Offer?
- Yes, because any relocation or repositioning of productive assets constitutes a sale event
- No, but solely where bondholders deliver prior written consent
- Yes, because the warehouse and the distribution center are located in two different states
- No, provided the exchange is for 'Replacement Assets' of equivalent Fair Market Value
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