medium · Debt Capital Markets
In the Restricted Payments 'Builder' formula, what is meant by 'Qualified Equity Interests'?
- Equity that has been approved by the Securities and Exchange Commission (SEC)
- Preferred stock that carries a mandatory cash dividend of 10% per annum
- Equity that is not 'Disqualified Stock' (stock that is mandatorily redeemable or behaves like debt)
- Common stock held exclusively by the borrower's executive management team
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