medium · Debt Capital Markets credit-ratings-risk
What is the 'Double Trigger' variation of a Change of Control provision?
- A clause that requires two different sponsors to approve the sale before the debt becomes portable
- A rule where the change-of-control put price rises from 101 to 102 whenever leverage exceeds a set level
- A requirement that a change of ownership must also be accompanied by a ratings downgrade to trigger the put.
- A requirement that both the bondholders and the senior bank lenders must each formally agree to the ownership change
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More Debt Capital Markets credit-ratings-risk practice
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