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 of the most senior debt issue is relevant
3. The baskets are consolidated into a single 'Weighted Average Available Amount'
4. The borrower can choose which indenture's basket it wants to use

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