Change of Control: When 110% Isn't Enough

Sheahan, Matthew
December 2011
High Yield Report;12/5/2011, p24
The article discusses the 110% special issuer redemption which is emerging as a new trend in the agreements in the oil and gas sector. It states that the arrangement places a limit to the amount bond issuers must pay to redeem their outstanding bonds in the event the company is taken over by another to 110% of par. It also elaborates on the circumstances when the covenant was first used by Brigham Exploration. An examination of how the covenant may impact investors' returns is offered.


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