medium · Debt Capital Markets primary-issuance-syndication

If a company has multiple bond issues outstanding, each with its own builder basket, which basket governs a potential dividend payment?

1. The dividend must be permitted under the most restrictive basket across all bond indentures
2. Only the basket contained in the company's most senior outstanding debt issue is relevant here
3. The individual baskets are consolidated into a single blended 'Weighted Average Available Amount'
4. The borrower may freely elect, issue by issue, whichever indenture's basket it would prefer to apply

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