medium · Debt Capital Markets primary-issuance-syndication
If an issuer fails the portability leverage test, they must launch a Change of Control Offer within a certain timeframe (e.g., 30 days).
What is the standard price they must offer to the bondholders?
- 100% (Par) plus a 5% consent fee.
- The current market price plus a 2% premium.
- 101% of the principal plus accrued interest.
- The Make-whole price as calculated by the lead manager.
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