Conversion ratio and Material adverse effect: Difference between pages

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''Convertible bonds''.
(MAE).  


The number of ordinary shares (or other securities) for which each convertible bond may be exchanged, at the bondholder's option.
A clause in a loan agreement. 
 
It is intended as a 'catch-all' clause and states that if there is a change in the circumstances of the borrower that materially and adversely affects the borrower's ability to repay, then this will constitute an event of default.


For example, if each convertible bond may be exchanged for 40 ordinary shares, then the conversion ratio is 40.


== See also ==
== See also ==
* [[Convertible bonds]]
* [[Event of default]]
* [[Loan agreement]]
* [[Material adverse change]]
* [[Adverse event]]
 
[[Category:Bank_Lending]]
[[Category:Debt_Capital_Markets]]
[[Category:Legal_Documentation]]

Revision as of 07:35, 5 July 2014

(MAE).

A clause in a loan agreement.

It is intended as a 'catch-all' clause and states that if there is a change in the circumstances of the borrower that materially and adversely affects the borrower's ability to repay, then this will constitute an event of default.


See also