Conversion ratio and Covenant: Difference between pages

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(Link with Non-financial covenant page.)
 
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''Convertible bonds''.
#A formal legal agreement to take, or not to take, certain actions.
The number of ordinary shares (or other securities) for which each convertible bond may be exchanged, at the bondholder's option.
#In loan documentation, a promise given by the borrower to take, or not to take, relevant actions.<ref>http://www.treasurers.org/node/8842</ref>  For example, a ''financial covenant'' to maintain a minimum ratio of net worth to debt.
For example, if each convertible bond may be exchanged for 40 ordinary shares, then the conversion ratio is 40.
#In relation to pension funds, the credit strength of the sponsoring employer and its commitment to the pension fund.
 


== See also ==
== See also ==
* [[Convertible bonds]]
* [[Accounting exposure]]
* [[Asset cover]]
* [[Event of default]]
* [[Financial covenant]]
* [[Incurrence covenant]]
* [[Interest cover]]
* [[Loan agreement]]
* [[Maintenance covenant]]
* [[Net worth]]
* [[Non-financial covenant]]
* [[Restrictive covenant]]
* [[Waiver]]
 
 
==References==
<references/> Treasury Essentials: Covenants, The Treasurer, March 2013
 
 
==Other links==
[http://www.treasurers.org/node/5225 Loan agreement covenant performance, Will Spinney, ACT 2009]


[[Category:Bank_Lending]]
[[Category:Debt_Capital_Markets]]
[[Category:Legal_Documentation]]
[[Category:Managing_Risk]]

Revision as of 16:26, 4 December 2013

  1. A formal legal agreement to take, or not to take, certain actions.
  2. In loan documentation, a promise given by the borrower to take, or not to take, relevant actions.[1] For example, a financial covenant to maintain a minimum ratio of net worth to debt.
  3. In relation to pension funds, the credit strength of the sponsoring employer and its commitment to the pension fund.


See also


References

Treasury Essentials: Covenants, The Treasurer, March 2013


Other links

Loan agreement covenant performance, Will Spinney, ACT 2009