Secured bond Definition

GLOSSARY

What does Secured bond mean?

A bond for which the issuer has set aside assets as collateral to ensure principal repayment and encourage timely interest payments.

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Covenants and other key terms in the European high-yield market

Covenants and other key terms in the European high-yield market What are high-yield covenants? High-yield bond covenants are crafted to reduce or eliminate value leakage by restricting certain types of activities by the issuer and its restricted subsidiaries. In general, they are only triggered when a company takes certain specified corporate actions. These include, but are not limited to, the incurrence of additional indebtedness or the transfer of value out of the group (including, for example, assets or cash) and are therefore also known as 'incurrence' covenants. Incurrence covenants are only tested when the issuer or any of its restricted subsidiaries take relevant corporate actions that are restricted by the covenants. Unlike a typical European senior bank facility, high-yield bond covenant packages will normally not require the issuer to maintain compliance with specified financial requirements on an ongoing basis, ie, they do not contain so-called 'maintenance' covenants. In negotiating such high-yield bond covenants—a balance must be struck between preserving the ability of the issuer to pay interest and...

Legal opinions required for a medium term note (MTN) programme

Legal opinions required for a medium term note (MTN) programme What is a legal opinion and when are they given? A legal opinion is a formal opinion expressing a view on legal matters relevant to a transaction. As described further below, legal opinions will typically cover a number of different aspects of a transaction and the scope of the opinion will vary on a case by case basis. This Practice Note is focused on opinions relating to matters of English law. Transactions involving parties or assets located in different locations will often need multiple legal opinions covering matters pertinent to each relevant jurisdiction. English lawyers have historically given formal legal opinions only to their own clients and have been very reluctant to provide opinions for the benefit of third parties, particularly where such third party is represented by English counsel. This approach is taken on the basis that another party should ordinarily obtain whatever legal comfort it requires as to English law from its own counsel. Also,...

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Banking & Finance weekly highlights—13 June 2019

This week’s edition of the Banking & Finance highlights includes: (1) Associated British Ports switches from LIBOR to SONIA, (2) news analysis on the EU banking package legislation, which has now been published in Official Journal (3) Government’s position on post-Brexit sanctions policy is criticised in a new report, and (4) ISDA publishes Trade life cycle events guide and master regulatory disclosure letter.

Abuse of process and recognition under the UNCITRAL Model Law on Insolvency

Restructuring & Insolvency analysis: When will an application for recognition under the UNCITRAL Model Law be treated as an abuse of process? Stefan Ramel of Guildhall Chambers comments on a ruling that clarifies the duties on an applicant for a recognition order under the Model Law.

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