medium · Debt Capital Markets credit-ratings-risk
In the Restricted Payments 'Builder' formula, what is meant by 'Qualified Equity Interests'?
- Any equity instrument that has first been formally approved for public issuance by the SEC
- Preferred stock that obliges the issuer to pay a fixed mandatory cash dividend of ten percent each year
- Equity that is not 'Disqualified Stock' (stock that is mandatorily redeemable or behaves like debt)
- Common stock that is held exclusively by members of the borrower's senior executive management leadership team
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