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 debt is portable.
- A rule where the put price increases from 101 to 102 if leverage is above a certain 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 bank lenders must agree to the ownership change.
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