tag:blogger.com,1999:blog-30643134.post6336448585449609176..comments2023-12-26T01:10:26.319-05:00Comments on Accrued Interest: Syntax vs. Meaning or Why Alltel won't be a LBOAccrued Interesthttp://www.blogger.com/profile/05096191765979971184noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-30643134.post-85568796912374540012007-02-27T19:34:00.000-05:002007-02-27T19:34:00.000-05:00Under a section titled "Lien on Assets""The Compan...Under a section titled "Lien on Assets"<BR/><BR/>"The Company covenants in the Indenture that, if at any time the Company mortgages, pledges, or otherwise subjects to any lien the whole or any part of a property or asset now owned or hereafter acquired by it, except as hereinafter described, the Company will secure the outstanding Securities, and any other obligations of the Company that may then be outstanding and entitled to the benefit of a covenant similar in effect to this covenant, equally and ratably with the indebtedness or obligations secured by such mortgage, pledge, or lien, for as long as any such indebtedness or obligation is so secured."<BR/><BR/>I have a word version, but I think its on page 13.Accrued Interesthttps://www.blogger.com/profile/05096191765979971184noreply@blogger.comtag:blogger.com,1999:blog-30643134.post-50763278792495814502007-02-27T14:45:00.000-05:002007-02-27T14:45:00.000-05:00Tom, I searched the AT 16s covenants and couldn't ...Tom, I searched the AT 16s covenants and couldn't find any non-subord. language. Could you point me to the section in the prospectus to focus on? Thanks for your time.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-30643134.post-16928968368890823862007-02-27T10:25:00.000-05:002007-02-27T10:25:00.000-05:00I think its going to become real common. Particula...I think its going to become real common. Particularly among companies like Home Depot or Target which are highly rated but possible buy-out candidates. Home Depot's old 10-year debt (with no covenants) is probably 40 bps wider than their new '13's with covenants. Even if you correct for the maturity difference, that's at least 25bps.<BR/><BR/>Alltel has non-subordination covenants. That means that they cannot issue new secured bonds without securing existing bond holders in the same manner. This is an important protection in a LBO scenario, since secured debt is common practice in the high-yield market. Still, it doesn't prevent a LBO, it probably just limits bondholders downside.Accrued Interesthttps://www.blogger.com/profile/05096191765979971184noreply@blogger.comtag:blogger.com,1999:blog-30643134.post-75992448491477372082007-02-26T17:53:00.000-05:002007-02-26T17:53:00.000-05:00In the past few months, there has been a tendency ...In the past few months, there has been a tendency for change-of-control language in new corporate issuance. In your opinion, where do you think a new issue AT 10yr would trade v. a new 10yr without the language. Additionally, do you have any thought on the higher frequency of change-of-control issuance?Anonymousnoreply@blogger.com