medium · Debt Capital Markets primary-issuance-syndication
An 'Equity Clawback' provision in a bond indenture typically allows the issuer to do what?
- Reclaim shareholder dividends if net leverage exceeds 6.0x.
- Redeem up to 35.0% of the bonds using proceeds from an equity offering.
- Compel every bondholder to convert their outstanding debt into common shares.
- Reduce the bond's coupon rate whenever the company's equity value doubles.
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