medium · Private Credit documentation-covenants-terms
In the context of call protection, what is the 'bond floor'?
- The lowest possible trading price a bond can reach before triggering a make-whole payment obligation
- The maximum amount of debt a company may issue before its subordinated lenders can call their own debt tranche
- The minimum floating interest rate, commonly called a floor, that the borrower must pay on the loan each period
- The value of a convertible bond as a straight fixed-income instrument, without the equity conversion option.
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