easy · Debt Capital Markets credit-ratings-risk

Which of the following actions would typically be classified as a 'Restricted Payment' under a standard high-yield bond indenture?

1. The purchase of a new manufacturing facility using cash on hand.
2. The payment of scheduled interest on the issuer's senior secured notes.
3. The declaration and payment of a cash dividend to common shareholders.
4. The repayment of a revolving credit facility with proceeds from an asset sale.

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