medium · Debt Capital Markets
If a company has multiple bond issues outstanding, each with its own builder basket, which basket governs a potential dividend payment?
- The dividend must be permitted under the most restrictive basket across all bond indentures
- Only the basket of the most senior debt issue is relevant
- The baskets are consolidated into a single 'Weighted Average Available Amount'
- The borrower can choose which indenture's basket it wants to use
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