easy · Private Credit & Debt documentation-covenants-terms
In the context of call protection, what is the 'bond floor'?
- The lowest possible price a bond can reach before a 'make-whole' is triggered.
- The maximum amount of debt a company can issue before subordinated lenders can call their debt.
- The minimum interest rate (floor) that the borrower must pay on a floating-rate loan.
- The value of a convertible bond as a straight fixed-income instrument, without the equity conversion option.
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